Spot rate raised on TCP's likely entry; lint prices inch up on cotton market
Official spot rate was raised on the cotton market on Friday amid improved buying by the mills and spinners to cover the forward needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was increased by Rs 100 to Rs 5,000, they said.
Prices of seedcotton in Sindh were at Rs 1500-2300 and in the Punjab at Rs 1600-2600, they said. In ready dealings over 25,000 bales of cotton changed hands at Rs 3300-5,150, they added. Other brokers said that the Trading Corporation of Pakistan's (TCP) likely entry into the market, stabilised prices. They also said that the ginners did not try to hold the unsold stock as prices were matching with their psychological level. Rising trend in the NY cotton market was another adding factor behind the firmness in the local cotton prices.
Additionally, to review the latest issues, facing the cotton circles, a discussion arranged by the Karachi Cotton Association (KCA) on Thursday, Naseem Usman said. In the meeting, the Federal Secretary Ministry of Textile Industry of Pakistan Shahid Rasheed backed the restarting of hedge trading in cotton through the Karachi Cotton Association (KCA). To achieve the desired purpose in the cotton business, a committee of all stake holders would be constituted, which will help in making a comprehensive cotton policy and will also assist in coordination of all cotton circles, he said. Constitution of the Federal Textile Board in future also under consideration, Shahid said.
Reuters adds: On Thursday the NY cotton futures closed with small gains on buying by small investors as the market drifted quietly in a band with many investors gone for the Christmas and New Year holidays, analysts said. The key March cotton futures went up 0.40 cent to close at 87.24 cents per lb, trading from 86.60 to 87.44 cents. On Wednesday, the range was 86.26 to 87.38 cents. The contract has been stuck between 85 and 88 cents the past few sessions. Volume traded stood at slightly over 4,500 lots, more than three-quarters under the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Tando Adam sold at Rs 3300, 400 bales of cotton from Nawabshah at Rs 4050, 400 bales of cotton from Bandhi at Rs 4050, 400 bales of cotton from Buchari at Rs 4050, 2000 bales of cotton from Khair Pur at Rs 4500/4700, 3000 bales of cotton from Upper Sindh at Rs 4900/5000, 1000 bales of cotton from Bahawal Nagar at Rs 4800, 400 bales of cotton from Meilsi at Rs 4800, 400 bales of cotton from Hasil Pur at Rs 4850, 1000 bales of cotton from Fort Abbas at Rs 4900, 1000 bales of cotton from Ahmed Pur at Rs 4900/5000, 400 bales of cotton from Layyah at Rs 4950, 2000 bales of cotton from Khanewal at Rs 4950/5000, 2000 bales of cotton from Rahim Yar Khan at Rs 5000/5075, 400 bales of cotton from Feroza at Rs 5000, 400 bales of cotton from Lodhran at Rs 5000, 1000 bales of cotton from Yazman Mandi at Rs 5000, 3000 bales of cotton from Khan Pur at Rs 5000, 800 bales of cotton from Vehari at Rs 5000/5100, 400 bales of cotton from Multan at Rs 5050, 1400 bales of cotton from Liaquat Pur at Rs 5000/5100, 400 bales of cotton from Jalal Pur at Rs 5100, 600 bales of cotton from Shujabad at Rs 5100, 400 bales of cotton from Tonsa Sharif at Rs 5100, 400 bales of cotton from Shadan Lund at Rs 5100, 400 bales of cotton from Jan Pur at Rs 5100 and 1000 bales of cotton from Rajan Pur at Rs 5150.
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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 22.12.2011
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37.324 Kgs 5,000 130 5,130 5,030 +100
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Equivalent
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40 Kgs 5,358 130 5,488 5,381 +107
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