An easier trend persisted on the cotton market on Friday in the process of moderate trading, dealers said. The official spot rate after a short break, shed Rs 50 to Rs 5300, 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 20,000 of deals were finalised between Rs 5250 and Rs 5550, they said.
Some brokers said that rates are falling with the passage of time and it looks that prices may slide further in the near future. Cotton analyst, Naseem Usman also said that the ginners have given up strategy to earn profit by selling unsold stock amid short supply. They have lost the opportunity after arrival of imported cotton from India and some other countries, he added.
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: 1000 bales of cotton from Nawabshah sold at Rs 5250, 2000 bales from Khairpur sold at Rs 5350-5400, 3000 Upper Sindh at Rs 5400-5450, 200 bales from Multan at Rs 5265, 400 bales from Bahawana at Rs 5400, 600 bales from Bakhar at Rs 5425, 200 bales from Bahawal Nagar at Rs 5425, 400 bales from Samundri at Rs 5450, 800 bales from Chistian at Rs 5450, 800 bales from Faqirwali at Rs 5450, 600 bales from Lodhran at Rs 5450, 600 bales from Fort Abbas at Rs 5450, 1000 bales from Haroonabad at Rs 5450-5475, 800 bales from Layyah at Rs 5450-5500, 600 bales from Alipur at Rs 5450-5550, 400 bales from Jahanian at Rs 5500, 1200 bales from Ahmedpur at Rs 5500, 1400 bales from Rajanpur at Rs 5500-5550, 800 bales from Sadiqabad at Rs 5550 and 1000 bales from Mianwali at Rs 5550, dealers said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 05-11-2015
===========================================================================
37.324 kg 5,300 135 5,435 5,485 -50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,680 145 5,825 5,879 -54
===========================================================================
Comments
Comments are closed.