Trade activity came under pressure on the cotton market on Thursday as many participants were busy in Holi celebrations, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said. In the ready business, around 4,000 bales of cotton changed hands between Rs 4300-5500, they said.
Market sources said that presence of main buyers was very thin. The undertone remained easy and outlook uncertain. They, however, said that trade activity may revive after Holi festival. Commenting on present trend in the market, they said that buyers are trying to lay hands over the best quality, which is short in demand. Prices may pick up or stabilise in the coming days, they added. As a whole, the future direction of the market is not so clear because of low off-take of cotton yarn and textile goods were giving gloomy outlook, they said.
Reuters adds: cotton futures rose slightly on Wednesday as a persistent short covering rally and outlook for tight near-term supplies offset a broad downtrend in commodities amid a stronger dollar.
Cotton is trading on its own right now, said Louis Barbera of ICAP Cotton. The front-month May contract on ICE Futures US settled up 0.02 cent, or 0.03 percent, at 58.39 cents per lb, after touching a high of 58.58 cents. The dollar index was up 0.42 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 2.19 percent. The front month May contract on ICE Futures US has been trading higher than the July and December contracts for about a month. A backwardation, with nearby prices at a premium to those further out, is often seen as a sign of tight nearby supplies.
The following deals finalised: 400 bales of cotton from Sanghar at Rs 4300, 400 bales from Burewala at Rs 4500, 600 bales from Chichawatni at Rs 4500, 400 bales from Layyah at Rs 4650, 1000 bales from Rahim Yar Khan at Rs 5500 and 600 bales from Rajanpur at Rs 5500, 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 22-03-2016
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37.324 kg 5,250 135 5,385 5,385 NIL
Equivalent
40 kgs 5,626 145 5,771 5,771 NIL
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