Reports of fall in crop, induced mills and spinners to make fresh deals to cover the immediate requirements, dealers said on the cotton market on Saturday. The official spot rate maintained surge for the second day, rising further Rs 50 to Rs 4,600, dealers said. Seed cotton prices in Sindh were at Rs 2300 and Rs 2400 and in Punjab rates were at Rs 2200 and Rs 2350, they said. In the ready business, around 20,000 bales of cotton changed hands between Rs 4625 and Rs 4700, they said.
According to the market sources, reports reaching from different sources, showing cut in cotton production, causing increase in demand from mills and spinners. Cotton analyst, Naseem Usman said that buyers were busy in forward sales ahead of Eid-ul-Azha holidays. He also said that the Pakistan Cotton Ginners Association (PCGA) reports showed that cotton production fell nearly 24 percent this season compared to the same period before a year.
Reuters adds: ICE cotton fell in light volume on Friday, remaining range-bound as speculators sat out ahead of the holiday weekend and traders looked ahead to next week's release of a US government world agriculture supply and demand (WASDE) report. December cotton on ICE Futures US settled down by 0.14 cent on Friday, a 0.2 percent loss, at 62.62 cents per pound. It traded within a range of 62.42 and 62.86 cents a pound. Cotton posted its second straight weekly losses, dropping 0.38 cent, or 0.6 percent. Total futures market volume fell by 5,530 lots to 7,495 lots. Data showed total open interest fell 89 contracts to 179,052 contracts in the previous session.
The following deals reported: 200 bales from Maqsooda at Rs 4625, 400 bales from Jhole at Rs 4825-4850, 1400 bales from Shahdadpur at Rs 4850, 200 bales from Shahpur Chakar at Rs 4650,400 bales from Hyderabad, 1200 bales from Sanghar, 400 bales from Jhole, 200 bales from Moro all done at the same rate, 2000 from Tando Adam at Rs 4850-4700, 1600 bales from Mirpurkhas, 1800 bales from Nawabshah finalised at the same rate, 200 bales from Gojra at Rs 4825, same figure from Mongi Bangle at Rs 4650, 400 bales from Jhang at Rs 4650, 200 bales from Shorekot at the same rate, 400 bales from Chichawatni, 1400 bales from Burewala both deals finalised at Rs 4650-4700, 400 bales from Miridwala at Rs 4650-4675, 1200 bales from Vehari at Rs 4700, 1800 bales from Mian Chano, 400 bales from Alipur 400 bales from Fazilpur, 200 bales from Rajanpur and 400 bales from Kabirwala all done at Rs 4700, dealers said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 04.09.2015
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37.324 Kgs 4,600 135 4,735 4,685 +50
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Equivalent
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40 Kgs 4,930 145 5,075 5,021 +54
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