Steady trend was seen on the cotton market on Friday as the NY cotton futures hit the new high at 2.12 per lb, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 12000, they said. Phutti prices in Sindh and Punjab were numoved and higher at Rs 4500-6000, they said. Above 4000 bales of cotton changed hands between Rs 11800-14000 (two-month credit).
The prices are stable and so the mills indulge in buying to meet the forward requirement. In the meantime, the ginners are trying to increase the rates to gain more profit, they said. Some experts said that the prices may tend higher in line with international market. According to a report China's cotton imports this year may fall because of high international prices and dwindling global supply, according to a research institute report published on Friday.
Cotton imports in 2011 are likely to be between 2.5 million and 2.845 million tonnes, flat or lower compared with last year's 2.84 million tonnes, said the cotton research institute under The Chinese Academy of Agricultural Sciences, in a report published on website of the China Cotton Association. The supply shortage and high prices would also damp cotton textile output this year, making it flat or lower than last year, said the report.
On Thursday the US cotton futures closed higher on late speculative and trade buying as the paucity in nearby supplies and steady fiber demand kept the market firm and near record highs, analysts said. The key May cotton contract on ICE Futures US rose 5.10 cents to finish at $2.057 per lb, dealing from $2.006 to the 7-cents limit up at $2.076.
Volume traded on Tuesday though stood about 26,800 lots, about 13.0 percent below the 30-day norm, Thomson Reuters preliminary data showed. Despite the robust level of cotton prices, open interest in cotton stood at 174,733 lots as of March 2, barely higher than the seven-month low at 174,074 lots as of February 28, data from ICE Futures US showed.
The following deals reported: some 800 bales of cotton from Haroonabad sold at Rs 11800-13000, 200 bales from Faqeerwali at Rs 12500, 400 bales of cotton from Rahim Yar Khan at Rs 13000, same number from Samandri at the same rate, same figure from Fort Abbas at the same rate, 800 bales from Sadiqabad at Rs 13000, same figure from Mianwali at Rs 13000-13500, 400 bales of cotton from Rajan pur at 13500 (one-month credit) and 600 bales of cotton from Khanpur at Rs 14000 for (two-month credit).
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak 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 03.03.2011
===========================================================================
37.324 Kgs 12,000 120 12,120 12,120 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 12,860 120 12,980 12,980 NIL
===========================================================================