Massive buying on cotton market despite fall in New York futures, transport problems ahead of holidays
Mills and spinners did hefty buying on the cotton market on Wednesday despite fresh decline in NY cotton futures and transport problems ahead of Eid-ul-Azha dealers said. The Karachi Cotton Association (KCA) official spot rate was declined, shedding Rs 100 to Rs 5,450, they said.
Prices of seedcotton in Sindh were lower by Rs 100 at Rs 2000-2500 and rates in Punjab for fine type gained Rs 100 to Rs 2200-2600, they said. In ready dealings, about 23,000 bales of cotton changed hands between Rs 4,000-5,550, they said. According to the market sources, many buyers were away from the market due to lack of buying interest as they have enough stock to meet the needs including export consignments. During the last few sessions, the mills and spinners bought stock as ginners were ready to oblige them by lowering the prices due to steady arrivals, they said.
It is also expected that the cotton production likely to be 13.8 million bales despite the huge damage of crop by the floods and monsoon rains, mainly in Sindh. The spinners and mills had a good chance to make deals for the forward buying as prices were matching with their psychological levels, they said On Tuesday the NY cotton futures closed lower on liquidation by investors spooked by a re-emerging euro zone debt crisis and news from US brokerage MF Global.
The key December cotton contract on ICE Futures US dropped 2.75 cents or almost 2.7 percent to finish at 99.54 cents per lb, moving from 98.77 cents to $1.0275. Total volume traded on Tuesday rose over 31,700 lots, on track for the highest since June 10 and more than double the 30-day norm, preliminary Thomson Reuters data and ICE Futures US data showed. On Friday, the contract ended at $1.0437 in the highest settlement for spot cotton in six weeks mainly due to optimism the European debt crisis had been resolved.
The following deals were reported: 200 bales of cotton from Hyderabad at Rs 4000, 400 bales of cotton from Hala at Rs 4100, 400 bales of cotton from Sultanabad at Rs 4100, 400 bales of cotton from Mir Pur Khas at Rs 4600/4800, 200 bales of cotton from Khair Pur at Rs 5000/5200, 1000 bales of cotton from Upper Sindh at Rs 5400, 1000 bales of cotton from Hasil Pur at Rs 5000, 600 bales of cotton from Garh maharaja at Rs 5000/5300, 400 bales of cotton from Pak pattan at Rs 5150, 200 bales of cotton from Faqir wali at Rs 5150, 400 bales of cotton from Chistian at Rs 5150, 600 bales of cotton from Haroonabad at Rs 5150/5200, 200 bales of cotton from Jhang at Rs 5200, 200 bales of cotton from Dunia Pur at Rs 5200, 200 bales of cotton from Darhan Wala at Rs 5200, 400 bales of cotton from Haroonabad at Rs 5200, 1000 bales of cotton from Mubarak Pur at Rs 5200, 600 bales of cotton from Fort Abbas at Rs 5200, 200 bales of cotton from Pir mahal at Rs 5300, 200 bales of cotton from Tandlian Wala at Rs 5300, 200 bales of cotton from Multan at Rs 5300, 200 bales of cotton from Mongi Bangla at Rs 5350, 600 bales of cotton from Yazman Mandi at Rs 5400, 3000 bales of cotton from Bahawal Pur at Rs 5400/5450, 3000 bales of cotton from Rahim Yar Khan at Rs 5400, 200 bales of cotton from Gojra at Rs 5400, 200 bales of cotton from Zaheerabad at Rs 5400, 400 bales of cotton from Ali Pur at Rs 5400, 400 bales of cotton from Lodhran 5400, 600 bales of cotton from Burewala at Rs 5400, 1200 bales of cotton from Khanewal at Rs 5400/5450, 400 bales of cotton from Rajan Pur at Rs 5500, 400 bales of cotton from Mian Wali at Rs 5550.
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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 01.11.2011
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37.324 Kgs 5,450 130 5,580 5,680 -100
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Equivalent
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40 Kgs 5,841 130 5,971 6,078 -107
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