Phutti prices drifted lower on the cotton market on Saturday as leading mills kept on the sidelines in the process of trading, dealers said. The official spot rate maintained overnight level at Rs 4,700, dealers said. Seed cotton prices in Sindh were lower by Rs 50 to Rs 2300 and Rs 2400 and in Punjab rates were at Rs 2300 and Rs 2400, they said.
In the ready business, around 20,000 bales of cotton changed hands between Rs 4740 and Rs 5000, they said. According to the market sources, in the late evening, it was observed that mills and spinners did not take interest in fresh buying due to less interest. Cotton analyst, Naseem Usman said that business body has failed to get any desired response from the government. On Friday, the government held discussion with the heads of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and export groups. All suggestions such as depreciation in the rupee, cut in gas tariff and wave out Gas Infrastructure Development Cess (GIDC) rejected by the government, he observed.
This factor caused decline in the rates and may not encourage buying to take part in fresh buying, he added. Besides, talking to Naseem Usman, All Pakistan Textile and Mills Association (APTMA) group leader, Gohar Aijaz, said that the government to provide direct subsidy to the cotton growers, which hopefully, help to compensate the future losses, he said.
Reuters adds: ICE cotton hit a more than two-week high but quickly gave up gains on Friday after the US government slashed its forecast for global demand amid an uncertain economic outlook for several cotton-consuming emerging market economies. This outweighed the effect of a lower-than-expected increase to its outlook for US production and ending stocks, which initially supported prices.
At 12:40 pm ET (1640 GMT), December cotton on ICE Futures US was down 0.1 percent at 63.01 cents per pound. Before the release of the report, cotton had also been trading in negative territory. In its monthly supply and demand report, the US Department of Agriculture (USDA) raised its forecast for US production to 13.43 million 480-pound bales, up from its bullish forecast of 13.08 million bales last month.
The following deals reported: 1000 bales from Shahpur Chakar at Rs 4750/4800, 2000 bales from Sanghar at Rs 4750-4825, same number from Shahdadpur at Rs 4750-4800, same number from Tando Adam, 1000 from Hyderabad all done at the same rate, 200 bales from Tando Ghulam Muhammad at Rs 4750, 2000 bales from Mirpurkhas at Rs 4775-4800, 1000 bales from Nawabshah at Rs 4800, 400 bales from Tob Tek Singh at the same rate, 1000 bales from Burewala at Rs 4850-4900, 400 bales from Bakhar at Rs 4900, 400 bales from Multan, same number from Chistian at the same rate, 800 bales from Hasilpur at Rs 4850-4900, 1000 bales from Haroonabad at the same, 400 bales from Bahawal Nagar at Rs 4900, 800 bales from Vehari at Rs 4950-5000, 1000 bales from Khanewal at Rs 4900-5000, 400 bales from Chichawatni at Rs 4960, 600 bales from Mian Chano at Rs 4900-5000, 400 bales from Fazilpur at Rs 5000 and same number from Rajanpur at the same rate, 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 11.09.2015
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37.324 Kgs 4,700 135 4,835 4,835 NIL
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Equivalent
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40 Kgs 5,037 145 5,182 5,182 NIL
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