Seed cotton prices fell on the cotton market on Thursday in the process of panic selling by ginners, dealers said. The official spot rate was unchanged at Rs 5350, dealers said. In Sindh, seed cotton prices were at Rs 2500 and Rs 2900 and in the Punjab rates were at Rs 2400 and Rs 3000, they said.
In the ready business, nearly 33,000 of deals were finalised between Rs 5375 and Rs 5600, they said. Market sources said that volume of business went up on rising demand by mills and spinners. They said that ginners are unnerved under the circumstances because on the one hand they store huge stock to earn profit on the back of short supply but buyers have started purchasing of imported stuff due to cheaper rates against local rates.
Cotton analyst, Naseem Usman also said that China is not importing huge stock of cotton from India, so that rates were not picking up. India wants to dispose of huge stock even at the lower rates, other experts said.
Adds Reuters: ICE cotton futures fell for the third straight session on Wednesday, hitting their lowest levels in more than three weeks, as harvest activities progressed in US growing regions and index funds shifted long positions forward from the front month. The December contract shifted to its first discount to the March contract since mid-August, marking a return to a market condition known as contango as nearby supply increased due to the harvest and funds sold December positions.
The spread between the two contracts widened to as much as 0.08 cent for the steepest contango since June. December cotton on ICE Futures US settled down by 0.63 cent on Wednesday, a 1 percent loss, at 61.94 cents per pound, after trading as low as 61.80, the lowest level since October 13. Total futures market volume rose by 11,265 to 43,686 lots. Data showed total open interest fell 379 to 199,327 contracts on Tuesday.
The following deals reported: 5000 bales of cotton from Khairpur at Rs 5375-5450, 3000 bales from Sukkur at Rs 5500, 2000 bales from Upper Sindh at Rs 5525, 200 bales from Chistian at Rs 5375, 1000 bales from Hasilpur at Rs 5400, 3000 bales from Bahawalpur at Rs 5400, 600 bales from Noorpur at Rs 5400, 400 bales from Kabirwala at Rs 5400, 1400 bales from Khanewal at Rs 5400-5525, 400 bales from Jalalpur at Rs 5400-5500, 1200 bales from Haroonabad at Rs 5450-5500, 1600 bales from Layyah at Rs 5500, 3000 bales from Yazman Mandi at Rs 5500, 400 bales from Shujabad at Rs 5500, 200 bales from Maroot at Rs 5500, 1000 bales from Rajanpur at Rs 5500-5550, 1000 bales from Rahim Yar Khan at Rs 5500-5600, 400 bales from Janpur at Rs 5525, 1800 bales from Ahmedpur at Rs 5525-5550, 800 bales from Muhammadpur Dewan at Rs 5550, 1400 bales from Sadiqabad at Rs 5550-5600, 400 bales from Liaquatpur at Rs 5550, 400 bales from Fort Abbas at Rs 5550, 1400 bales from Mianwali at Rs 5600 and 400 bales from Burewala at Rs 5600, 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 04-11-2015
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37.324 kg 5,350 135 5,485 5,485 NIL
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Equivalent
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40 Kgs 5,734 145 5,879 5,879 NIL
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