Anticipations of short crop and persistent demand may cause more increase in prices on the cotton market on Wednesday, dealers said. The official spot rate was higher by Rs 100 to Rs 5,050, dealers said. In Sindh, seed cotton prices posted fresh gain of Rs 100 to Rs 2450 and Rs 2650 and prices in the Punjab were at Rs 2600 and Rs 3000, they said. In the ready business, around 14,000 bales of cotton changed hands between Rs 4775 and Rs 5300, they said.
Market sources said that short crop news is playing a vital role behind the surge in the prices during the last several sessions. Cotton analyst, Naseem Usman said that the government has estimated about 13.38 million bales of cotton for the next production, but the output is likely to come down against the estimate.
This is propelling buyers to purchase even make imports to meet their demand in the near future. Besides, he said that Louis Dreyfuss, an international cotton company bought nearly 80,000 bales from local ginners last days at the lower rates, now selling to mills and exporters, increasing it's profits.
Adds Reuters: ICE cotton rose on Tuesday, extending substantial gains from the prior session to hit its highest level in more than two weeks on concerns that flooding and rains in the US Southeast would damage crop quality, and also on support from a broader rally in the commodities complex. Cotton traded within a relatively tight range, as moves above 62 cents a pound attracted selling from producers, Kramedjian said.
December cotton on ICE Futures US settled up by 0.21 cent, a 0.3 percent gain, at 62.08 cents per pound. It traded within a range of 61.71 and 62.33 cents a pound. Total futures market volume fell by 12,733 to 15,796 lots. The following deals reported: 600 bales from Sanghar at Rs 4775, 800 bales from Tando Adam at Rs 4775-4800, 800 bales from Mirpurkhas at the same rates, same figure from Shahdadpur at the same rates, 400 bales from Hederabad at Rs 4800, same number from Tando Adam at the same rate, 1000 bales from Nawabshah at Rs 5100-5200, 3000 bales from Khairpur at the same prices, 1600 bales from Saleh Pat at Rs 5150-5200, 1400 bales from Rohri at the same rate, 200 bales from Chiniot at Rs 5150, 400 bales from Bahawalpur at the same rate, 800 bales from Haroonabad at Rs 5150-5200, 600 bales from Faqirwali at Rs 5200, 400 bales from Chistian at the same rate, 600 bales from Layyah at Rs 5200-5250, same figure from Alipur at Rs 5250, 400 bales from Mianwali at Rs 5250-5300, 600 bales from Dera Ghazi Khan at Rs 5300 and 1000 bales 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 06-10-2015
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37.324 Kgs 5,050 135 5,185 5,085 +100
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Equivalent
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40 Kgs 5,412 145 5,557 5,450 +107
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