Moderate business was seen on the cotton market on Saturday as the ginners adopted flexible attitude to dispose off low quality cotton, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 11800, they said. Phutti prices in Sindh and Punjab were also unchanged at Rs 4000 and Rs 5200, they said. About, 7,000 bales of cotton changed between Rs 10750-12000, dealers added.
Activity improved following the mills' active buying, dealers said and adding that it looks that business may improve in the coming days. Naseem Usman said that ginners showed interest in selling of low variety and this factor encouraged the mills to take part trade. According to a report, China, already busy scouring the world for cotton, will seek a hefty 20 percent increase in imports of the fiber next marketing year, which could send already lofty world prices even higher.
China, the world's largest cotton grower and buyer, will boost imports by three million bales to 18 million bales in 2011/12, said the US Agriculture Department on Friday. On Friday the US cotton futures surged to their upside limit, after spending most of the session in negative territory, but brokers said the gains were made on very light volume initiated by speculative buyers.
March futures, currently in the delivery period which eliminates the price limit, advanced by a greater amount than later-dated contracts. March cotton ended 10.06 cents, or 5.55 percent, higher at $1.9134 per lb, after shooting to a 10-day peak at $1.9250 a lb reached in a very short span of time. March volume was a mere 190 lots.
Similarly, benchmark May contracts, which traded sharply lower for most of the session, suddenly advanced by the upside limit of 7 cents, a 3.95 percent increase, to $1.8423. Volume in May contracts came to 9,375 lots. Contracts through March 2012 also rallied to their upside limit, with the rest finishing with substantial gains.
The following deals were reported: 400 bales of cotton from Chichawatni sold at Rs 10750-11300, 400 bales of cotton from Faqirwali at Rs 11000, 800 bales from Haroonabad at Rs 11000-11300, 400 bales from Burewala at Rs 11300, 400 bales from Yazman Mandi at Rs 11500, 200 bales of cotton from Ahmed Pur at Rs 11700, 600 bales from Hasil Pur at Rs 11800-12000, 400 bales of cotton from Rajan Pur at Rs 12000, 800 bales from Fazil Pur 12000, 400 bales from Noor Pur at Rs 12000, 400 bales from Uch Sharif at Rs 12000, 400 bales from Ali Pur at Rs 12000, 400 bales from Rahim Yar Khan at Rs 12000, 400 bales from Fort Abbas at Rs 12000 and 200 bales from Qutab Pur at Rs 12000.
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The KCA Official Spot Rate for Local Dealings in Pak 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 25.02.2011
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37.324 Kgs 11,800 120 11,920 11,920 NIL
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Equivalent
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40 Kgs 12,646 120 12,766 12,766 NIL
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