Cotton market: trade activity fails to gain momentum on less supply of quality lint

Trading activity failed to sustain week-end's momentum on the cotton market on Monday owing to decline in cotton stock, dealers said. The official spot was unchanged at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 2900, in the Punjab, rates were at Rs 2300 and Rs 3100, they said. In the ready business, around 10,000 bales of cotton changed hands between Rs 5300 and Rs 5700, they said.
Market sources said that polyester yarn prices fell by Rs 2, this is causing an uncertainty among cotton traders. Cotton analysts said that needy buyers rushed to purchase quality lint due to falling stock and this factor is helping rates to sustain firmness.
They also said that the ginners have more or less one million bales, causing jitters among both buyers and sellers. In fact, some leading spinners indulged in hasty buying, they said adding we can see though competition among the spinners, which definitely giving boost to the rates.
In the last session, the ginners were in search of big deals to dispose of their stock, actually, the market is in grip of uncertainty due to persistent world recession, cotton analyst, Naseem Usman said. In today's business, some leading ginners seem not to make deals in a hurry, in expectations of better prices in the coming days, he added.
The following deals reported: 2400 bales from Rohri at Rs 5420, 2000 bales from Pano Aqil at Rs 5525, 500 bales from Haroonabad at Rs 5300, 200 bales from Yazman Mandi at Rs 5350, 400 bales from Chistian at Rs 5350, 200 bales from Dera Ghazi Khan at Rs 5350, 200 bales from Bahawal Nagar at Rs 5375, 1200 bales from Fort Abbas at Rs 5400, 400 bales from Liaquatpur at Rs 5475, 400 bales from Mianwali at Rs 5575 and 600 bales from Fazilpur at Rs 5700, 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 06-02-2016

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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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