Trading activity falls on cotton market as buying interest dwindles
Mills and spinners kept on the sidelines on the cotton market on Friday in expectations of fall in prices due to better-than-expected production this year, dealers said. The official spot rate was held at the overnight level at Rs 5,600, they said.
Prices of seedcotton in Sindh were at Rs 2000-2500 and in the Punjab at Rs 2200-2800, they said. In ready dealings about 10,000 bales of cotton changed hands at Rs 4,500-5850, they added. It was observed that the mills and spinners did not take interest in the fresh buying of cotton despite the fact that some ginners were prepared to lowering the rates in anticipation of rise in cotton production for the current season, cotton analysts said.
Negativity and uncertainties on the economic and political fronts caused falling trend in the business activity in the country, Naseem Usman said adding that other factor is lack of foreign demand, which is main concern among the traders. In the absence of basic facilities, the textile exporters may lose foreign orders because mills were not able to meet demand on time due to less power and gas supply in the country, experts said.
Many ginners lower the asking prices just to dispose off the old stock following the reports of bullish trend in the Phutti arrivals, they said. According to the Reuters on Thursday, the NY cotton futures ended lower, unwinding its advance to a two-month peak, after most estimates in the US Department of Agriculture's December supply/demand report were seen as bearish, according to several brokers.
Benchmark March cotton futures finished 1.18 cents lower at 95.69 cents a lb after falling to a four-day low at 94.13 cents. Earlier, it reached a high last seen on November 18 at 97.50 cents. Volume was a healthy 17,209 lots, above the 30-day norm, according to preliminary Thomson Reuters data.
The following deals were reported: 400 bales of cotton from Mirpur Khas at Rs 4500, 200 bales of cotton from Kazi Ahmed at Rs 5300, 200 bales of cotton from Bandhi at Rs 5300, 400 bales of cotton from Nooriabad at Rs 5300, 1000 bales of cotton from Faqirwali at Rs 5400/5450, 1000 bales of cotton from Haroonabad at Rs 5400/5500, 600 bales of cotton from Hasil Pur at Rs 5450/5500, 400 bales of cotton from Vehari at Rs 5600, 400 Chichawatni at Rs 5700, 400 bales of cotton from Bahawal Pur 5700, 600 bales of cotton from Khanewal 5700, 400 bales of cotton from Noor Pur at Rs 5750, 400 bales of cotton from Sadiqabad at Rs 5750, 600 bales of cotton from Rahim Yar Khan at Rs 5750, 400 bales of cotton from Jalal Pur at Rs 5750, 400 bales of cotton from Khan Pur at Rs 5800, 800 bales of cotton from Mian Wali at Rs 5800/5850.
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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 12.01.2012
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37.324 Kgs 5,600 130 5,730 5,730 NIL
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Equivalent
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40 Kgs 6,002 130 6,132 6,132 NIL
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