Trading activity improved modestly on the cotton market on Thursday, dealers said. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2900 and in the Punjab, rates were at Rs 2200 and Rs 3000, they said. In the ready business, around 13,000 bales of cotton finalised between Rs 4900 and Rs 5600, they said.
According to the market sources, some buying interest emerged among the mills and spinners, which helped the rates to maintain present levels. Cotton analyst, Naseem Usman, said that the whole world is facing recession, this factor caused fall in volume of business. The ginners were trying to sell cotton at the present rates, but the buyers preferring to import cotton because of cheaper rate as compare to the local prices.
Adds Reuters: Cotton futures pared gains from 3-1/2-month highs to trade little changed on Wednesday after the US Department of Agriculture (USDA) lowered its forecasts for US exports and global consumption in its monthly supply and demand report.
March cotton on ICE Futures US was up 0.01 cent at 64.45 cents a lb at 12:47 pm EST (1747 GMT) after trading as high as 65.23 cents a lb, the highest level since August 24, before the release of the report. The declines came as the USDA slashed its outlook for global demand to 111.39 million 480-lb bales at the end of the 2015/16 crop year in July, down from 111.59 million in its November forecast, driven by a 500,000 bale drop in its expectations for demand in top-consumer China.
That corresponded with a drop in its forecast for exports from the United States, the world's leading exporter, to 10 million bales, down from 10.2 million last month. That would be the lowest level since the 2000/2001 crop year. The following deals reported, 400 bales from Hyderabad at Rs 4900, 400 bales from Nawabshah at Rs 5250, 1000 bales from Khairpur at Rs 5300-5350, 200 bales from Nushero Feroz at Rs 5400, 1000 bales from Salehpat at Rs 5425, 600 bales from Rohri at Rs 5425, 600 bales from Ghotki at Rs 5575-5650, 400 bales from Bahawal Nagar at Rs 5100, 800 bales from Bahawalpur at Rs 5150, 400 bales from Hasilpur at Rs 5200, 600 bales from Chistian at Rs 5250, 400 bales from Faqirwali at Rs 5350, 800 bales from Haroonabad at Rs 5400, 600 bales from Yazman Mandi at Rs 5425, 800 bales from Fort Abbas at Rs 5425-5525, 400 bales from Fazilpur at Rs 5475, 600 bales from Mianwali at Rs 5550, 400 bales from Khanpur at Rs 5590, 1000 bales from Rahim Yar Khan at Rs 5600 and 1000 bales from Sadiqabad 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 09-12-2015
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37.324 kg 5,200 135 5,335 5,335 NIL
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Equivalent
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40 kgs 5,573 145 5,718 5,718 NIL
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