Most of the leading spinners failed to make new deals on the cotton market on Friday in the absence of fresh leads, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton at Rs 1600 and Rs 2800, in the Punjab, rates were at Rs 2000 and Rs 3000, they said. In the ready business, about 3000 bales of cotton changed hands between Rs 4585 and Rs 5600, they said.
According to some analysts one mill has bankrupted due to persistent fall in yarn demand and textile exports. The overall sentiments remained depressed and lack of much needed activity. They also said that falling trend in commodity markets including cotton was having an adverse impact on local cotton as well where Phutti prices moved lower for straight session.
Huge stock of oil in the world market the prices were bound to move lower in the coming days and this would once again trigger downward trend in the commodities all over the world, they said. Besides, cotton analyst, Naseem Usman said that yarn market continued to be under pressure due to lack of buying interest from value-added sectors of textile.
Reuters adds: Cotton futures fell to the lowest in over a year on Thursday, weighed down by the broadly bearish sentiment in commodities markets and data showing a drop in US export sales. The March cotton contract on ICE Futures US settled down 0.46 cent, or 0.8 percent, at 58.42 cents per lb after hitting 57.85 cents a lb, a contract low and the weakest price since January 2015.
US export sales of upland cotton totalled 227,700 running bales in the week ended February 4, down 10 percent from the previous week, according to US government data released Thursday. The following deals reported: 200 bales from Shahdadpur sold at Rs 4585, same number from Hyderabad at Rs 4600, same figure from Maroot at Rs 5300, 400 bales from Sher Sultan at the same rate, 800 bales from Bahawalpur at Rs 5375-5575, 400 bales from Khanpur at Rs 5550 and same figure from Yazman Mandi at Rs 5600, 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 11-02-2016
===========================================================================
37.324 kg 5,350 135 5,485 5,485 NIL
Equivalent
40 kgs 5,734 145 5,879 5,879 NIL
===========================================================================
Comments
Comments are closed.