Cotton rates firm on hopes of rise in exports of textile items
Prices remained firm on the cotton market on Monday as buyers were interested in fresh buying on anticipation of rise in the rates, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,800, they said.
Seedcotton rates in Sindh were firm at Rs 2900-3100, prices were unchanged in Punjab at Rs 2600-3000, they said. In the ready business, approximately, 3,200 bales of cotton changed hands between 7000-7100, dealers added. Phutti arrivals in Punjab are in well process and demand is also there as China importers were inquiring about quality and prices, some experts said.
According to the market sources, cotton market halted fresh decline after falling massively on rising perception that production of cotton would rise and country may be able to achieve target of 15 million plus bales. Some other analysts, however, said that it is before time to predict about the definite size of total production. Sowing was good and it can be said that starting is good, but in the meantime, next achievements will fully depend on weather condition, because crop is still safe from pest attack, they added.
Commenting on the present situation, Naseem Usman was of the view that cotton traders indulged in buying to keep themselves away from the future losses, if prices go up on speculative buying as happened in the past. On the other hand, some said that during the last several sessions, there was dullness in the market as buyers were on the sideline because those who did buying at high rates last year, now losing profits despite the fact that they have good quality of stuff, they said.
All are depending on the future, some analysts said and adding that right now it is very difficult to predict about the future direction of market, under the circumstances, not a single person is prepared to guess about the line of action of both the buyers and sellers.
As reports are reaching the market that despite the sporadic rains the most parts of the Punjab, particularly in cotton belt, there are indications that rates of phutti in the early sowing areas are up as growers are not looking panicked to sell the stuff, they said.
The following deals were reported: 400 bales of cotton from Shahdad Pur sold at Rs 7000, 200 bales from Sanghar at Rs 7000, 200 bales from Hyderabad at Rs 7000, 200 bales from Tanndo Mohammad Khan at Rs 7000, 200 bales from Golarchi at Rs 7000, 600 bales from Burewala at Rs 7000, 200 bales from Arifwala sold at Rs 7100, 200 bales from Sahiwal at Rs 7100, 200 bales from Hasil Pur at Rs 7100, 200 bales from Bahawal Nagar at Rs 7100, 200 bales from Khanewal at Rs 7100, 200 bales from Mian Channu at Rs 7100 and 200 bales from Chichawatni at Rs 7100.
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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 09.07.2011
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37.324 Kgs 6,800 120 6,920 6,920 NIL
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Equivalent
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40 Kgs 7,288 120 7,408 7,408 NIL
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