Some deals were seen on the cotton market on Thursday as many buyers were reluctant to enter into fresh deals still hoping for decline in the rates, dealers said. Karachi Cotton Association (KCA) official spot rate was steady at Rs 12,500, they said.
In Sindh and Punjab phutti price of low type was at Rs 4000 and superior type also unchanged at Rs 5000, they said. In ready business nearly 1600 bales of cotton changed hands between Rs 11600-11900, they added.
According to the market sources the mills were sidelined in anticipation of further decline in the rates despite knowing the fact that unsold stock is short of demand. The ginners are not afraid about the prices because they are sure that prices may rise due to short crop, they said.
Other brokers were of the opinion that some ginners can sell all stock in a one-day. Commenting on the new crop sowing, analysts said that reports are encouraging for the new sowing and it is most likely that country may achieve the expected target for the new season, they said. On Wednesday the US cotton futures finished up the daily maximum on investor and speculator short-covering as players awaited release of a government crop report at the end of the week, brokers said.
The key May cotton contract on ICE Futures US rose the seven-cent limit to end at $2.0806 per lb, with the session low at $1.9934. The new-crop December cotton contract gained 4.21 cents to end at $1.4197. Total volume traded in the cotton market was around 30,000 lots, about 30 percent above the 30-day norm, Thomson Reuters preliminary data showed. Open interest was 195,689 lots as of April 5, the highest in 8-1/2 weeks, according to ICE Futures US figures. The following deals were reported: some 600 bales of cotton from Hasilpur sold at Rs 11600 and 1000 bales of cotton from Noor Pur Noranga sold at Rs 11900, dealers said.
===========================================================================
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 05.04.2011
===========================================================================
37.324 Kgs 12,500 120 12,620 12,620 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 13,396 120 13,516 13,516 NIL
===========================================================================