As a result of picking operations improvement the ginners started selling on the cotton market on Friday at the present rates, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 7400, they said. Prices of seedcotton in Sindh were unchanged at Rs 2300-2800 and rates in Punjab were at Rs 2000-3000, they said.
In ready dealings nearly 12,000 bales of cotton changed hands between Rs 6500-7,400, they added. Trading activity picked up as mills and spinners made hectic forward buying because rates attracted them but some of them kept to sidelines on expectations of further decline in the prices, they said.
Recent rise in the NY cotton futures propelled the mills to make deals and market was a little bit in the hands of speculators after rains, analysts said. There were speculations that the rates to go up due to heavy loss of cotton crop, particularly in Sindh, so the buyers were trying to save themselves from future losses, they said.
In the meantime, it is very difficult to see any positive sign on the textile export front, in the absence of orders for the ready-made garments by the foreign countries. On Thursday the NY cotton futures posted their biggest one-day loss in three weeks, under pressure from disappointing export sales figures that continued to show cancellations in the crop. "China cancelled 200,000 it just continues to confirm that we are not selling any cotton," said Keith Brown of Keith Brown and Co in Moultrie, Georgia.
The key December cotton contract on ICE Futures US fell 2.05 cents or 1.8 percent to finish at $1.1162 per lb, its largest daily decline since August. 25, when it shed 1.9 percent of its value. The session range ran from $1.0942 to $1.1483. In looking at that demand outlook, China will issue low-tariff import quotas of wheat, rice and corn as well as cotton for 2012, with volumes unchanged from 2011, the National Development and Reform Commission said on Thursday. Volume on Wednesday increased to 14,239 lots from the previous session's count of 11,975 lots, ICE Futures US data showed.
The following deals were reported: 200 bales of cotton from Kotri at Rs 6500, 200 bales from Sultanabad at Rs 6600-7000, 200 bales from Tando Adam at Rs 6900, 200 bales from Khipro at Rs 6800, 200 bales from Kazi Ahmed at Rs 7100, 200 bales from Moro at Rs 7100, 800 bales from Khair Pur at Rs 7300, 400 bales of cotton from Saleh Pat at Rs 7300, 600 bales of cotton from Rohri at Rs 7300, 400 bales from Kumb at Rs 7300, 200 bales from Khanewal at Rs at Rs 7400, 1200 bales of cotton from Burewala at Rs 7300-7350, 600 bales from Rahim Yar Khan at Rs 7200, 400 bales from Sadiqabad at Rs 7200, 400 bales from Ahmed Pur at Rs 7400, 600 bales from Arifwala at Rs 7200-7300, 200 bales from Multan at Rs 7300, 1000 bales of cotton from Bahawal Pur at Rs 7300, 400 bales of cotton from Vehari at Rs 7200-7250, 200 bales of cotton from Sahiwal at Rs 7250, 600 bales from Vehari at Rs 7150-7200, 200 bales from Pir Maha at Rs 7200, 400 bales from Kacha Khoo at Rs 7200, 200 bales from Gajjo Mandi at Rs 7200 and 200 bales from Faqirwali at Rs 7200.
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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 15.09.2011
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37.324 Kgs 7,400 130 7,530 7,530 NIL
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Equivalent
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40 Kgs 7,931 130 8,061 8,061 NIL
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