Prices maintained firm outlook on the cotton market on Wednesday in the process of moderate trading, dealers said. The official spot rate held the overnight rate at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2300 and Rs 3100, they said. In the ready business, around 12000 bales of cotton changed hands between Rs 5300 and Rs 5650, they said.
Some analysts observed that mills and spinners continued buying to cover the immediate requirements. Cotton farmers and growers were unhappy under the circumstances because of falling quality of cotton seed, this factor is causing poor variety of cotton lint. Cotton analyst, Naseem Usman said that as a whole in the local market, prices keeping firm posture due to tight supply of fine quality. In the meantime, slowdown in Chinese recovery and rapid fall in the commodities, particularly dip in oil rates in the globe make the traders and businessmen jitters.
According to the Reuters, cotton futures saw their largest single-session gains in nearly two months on Tuesday, hitting a two-week high as a large drop in speculators' net short positions fuelled buying after prices approached technically oversold levels. March cotton on ICE Futures US settled up 1.06 cent, or 1.73 percent, at 62.47 cents per lb, after rising as high as 62.93 cents a lb, the highest level since January 4.
That marked the sharpest single-session gain since November 25. Speculators slashed their cotton bullish bets to their lowest levels in 3-1/2 months in the week ended January 12, according to data released Friday after market close. Markets were closed on Wednesday Total futures market volume rose by 13,636 to 36,129 lots. Data showed total open interest gained 184,478 to 184,478 contracts in the previous session.
The following deals finalised: 600 bales of cotton from Khairpur at Rs 5350, 600 bales from Rohri at Rs 5500, 1000 bales from Chichawatni at Rs 4900, 400 bales from Chistian at Rs 5300, 400 bales from Faqirwali at Rs 5400, 200 bales from Fort Abbas at Rs 5425, 400 bales from Layyah at Rs 5435, 400 bales from Burewala at Rs 5500, 600 bales from Mianwali at Rs 5500, 800 bales from Lodhran at Rs 5600, 400 bales from Multan at Rs 5600, 1000 bales from Rahim Yar Khan at Rs 5600, 500 bales from Vehari at Rs 5600, 600 bales from Kot Sabzal at Rs 5650, 600 bales from Khanewal at Rs 5650 and 1000 bales from Sadiqabad at Rs 5650, they 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 19-01-2016
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37.324 kg 5,400 135 5,535 5,535 NIL
Equivalent
40 kgs 5,787 145 5,932 5,932 NIL
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