KCA spot rate sharply slashed to Rs 10,500; lint prices also fall on cotton market
Steep fall was again witnessed in the official spot rate on the cotton market on Friday for the fourth day, besides, the ginners got panic and started selling unsold stock following the talks of imports of cotton from overseas market after sharp decline in the rates, dealers said.
Karachi Cotton Association (KCA) official spot rate slide continued, down further by Rs 500 to Rs 10,500 in a single day, they said. In Sindh and Punjab phutti price of low type was at Rs 3000 and that of superior type at Rs 3500, they said. In ready business nearly 1400 bales of cotton changed hands between Rs 9,400-10500, they added. Market sources said that trading activity was slow as genuine buyers were mulling to import cotton, if prices match with their psychological level.
The ginners, on the other hand, who were hoping for the better return, after selling the stuff at the asking prices, but in vain because the rates have started coming down in both the overseas and local market, they said. The other leading factor is prospects for better production for the coming season by change globally and locally, as well, other analysts said.
On Thursday, the US cotton futures closed higher, bouncing off a 2-1/2-month low hit early in the session. Cotton ended the week sharply lower, pressured by rollovers out of May futures. But on Thursday, this selling gave way in anticipation of the start of May deliveries, set to begin Thursday evening.
ICE Futures US commodity markets will stay shut for the Good Friday holiday. Cotton No 2 will reopen electronic trade at its regular opening time on Monday. Front-month May cotton on ICE Futures US rallied 3.50 cents to end at $1.8715 a lb. Most-active July finished with 0.45 cent gains to close at $1.6794 per lb. July slipped as low as $1.64, a level last seen on February 7. New-crop December cotton jumped 3.34 cents by the close to $1.3214 cents per lb., a 2.59 percent gain.
The following deals were reported: 200 bales of cotton from Mir Pur Khas sold at Rs 10,000, 200 bales of cotton from Mir Pur Khas at Rs 9850, 200 bales from Mir Pur Khas at Rs 9500, 200 bales of cotton from Mir Pur Khas at Rs 9400, 200 bales from Saleh Pat at Rs 10500, 200 bales from Mir Pur Mathelo at Rs 10500, 200 bales from Dharki at Rs 10500, 200 bales from Rahim Yar Khan at Rs 10000 and 200 bales from Faqir wali at Rs 10000, they added.
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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 21.04.2011
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37.324 Kgs 10,500 120 10,620 11,120 -500
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Equivalent
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40 Kgs 11,253 120 11,373 11,909 -536
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