Cotton prices at nearly one-year low level: exporters enter market
Prices came down to one-year low at Rs 6000 on the cotton market on Wednesday in process of improved activity, dealers said. The Karachi Cotton Association (KCA) official spot rate was slashed sharply by Rs 500 to Rs 6,200, they said. Seedcotton rates in Sindh were lower by Rs 100 to Rs 2600-2700, prices in Punjab followed the same pattern, dropping Rs 100-300 to Rs 2400-2500, they said.
In ready business, approximately, in a single day slide, prices fell by Rs 500-650 as 8000 bales of cotton changed hands between 6000-7350, dealers added. Some experts were of the view that trading activity improved as buyers, particularly exporters entered the market due to sharp fall in the prices following the rise in cotton production the world over.
With the passage of time, phutti arrivals are increasing, which is also a basic factor behind the fall. Other positive factor is, if cotton production continue to rise, country may be able not to import cotton, Naseem Usman said. On Tuesday the US Cotton futures closed at a new nine-month low for a second day running due to investor sales, and weak demand coupled with jitters over the euro zone crisis could hit values further, brokers said.
The key December futures on ICE Futures US fell 4.49 cents, or 4.12 percent, to end at $1.0439 per lb, dealing from $1.0388 to $1.0679. It was the lowest close for the second-position contract since early October 2010, Thomson Reuters data showed. The market last traded below the psychological $1 mark also in October 2010, Thomson Reuters data showed. Volume traded was almost 21,500 lots at 2:49 pm EDT (1849 GMT), nearly 10 percent above the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 1000 bales of cotton from Sanghar sold at Rs 6000-6300, 1200 bales of cotton from Shahdad Pur at Rs 6200-6300, 800 bales from Mir Pur Khas at Rs 6000-6300, 600 bales from Tando Adam at Rs 6200-6300, 300 bales of cotton from Hyderabad at Rs 6200-6300, 400 bales from Sadiqabad at Rs 6350, 200 bales from Rahim Yar Khan at Rs 6300, 600 bales from Mian Channu at Rs 6000-6180, 800 bales from Chichawatni at Rs 6000-6300, 200 bales from Samandari at Rs 6325, 200 bales from Mian Channu at Rs 6200, 200 bales from Haroonabad at Rs 6250, 600 bales farom Sahiwal at Rs 6000-6250, 400 bales from Chichawatni at 6000-6200 and 200 bales from Shujabad at Rs 6000.
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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 12.07.2011
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37.324 Kgs 6,200 120 6,320 6,820 -500
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Equivalent
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40 Kgs 6,645 120 6,765 7,300 -535
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