Firmness prevails as prices retain overnight levels on cotton market
Firmness prevailed on cotton market on Thursday as prices almost retained at the last levels, traders said. KCA left the official spot rate unchanged at Rs 5.700, they said. Similarly the seed cotton prices did not move any side, remained in Sindh at Rs 1800-2450 and in the Punjab at Rs 2000-2750, they said.
In ready turnover ever 9000 bales of cotton changed hand at Rs 4400-6000, they added. Regarding the opportunities accruing under EU waiver approved by the WTO, experts were of the opinion that it will impact the market in the long run but not in negative terms. Nasim Usman said that the smooth arrivals of phutti would touch the 14.4 million bales mark. According to Reuters: N Y cotton futures ended higher on Wednesday, reversing losses in the previous two sessions, as the greater gains in deferred contracts indicated demand was recovering, dealers said.
Benchmark March cotton on ICE Futures US edged up 0.14 cent at 93.39 cents per lb, and ranged from 93.20 to 94.21 cents. "Added carrying charges indicate the market demand is returning to a more normal posture given ample supplies," said John Flanagan of Flanagan Trading Corp in North Carolina.
The higher prices for deferred contracts, which cover the cost of carrying or storing cotton, suggests that cotton is in a bull market, Flanagan said. Cotton ended up nearly two percent January for its second consecutive monthly gain as better sentiment in the commodity complex lifted cotton after a 10 percent drop in November.
Volume was in line with recent pace but fell below its 30-day average. The market now looks forward to next Thursday's US Department of Agriculture monthly cotton supply and demand report. And next Friday, US industry group National Cotton Council will issue its annual survey of potential US cotton plantings in 2012. Open interest, an indicator of market liquidity, rose to 172,686 lots as of Tuesday versus 168,169 lots on Monday, ICE Futures US data showed. Tuesday's volume stood at 34,060 lots, above Monday's tally of 25,075 lots, exchange data showed.
Ths following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 4400, 400 bales from Shahdad Pur at Rs 4400, 1000 bales from Ghotki at Rs 5675/5700, 400 bales from Khuzdar at Rs 5900, 400 bales from Faqir Wali at Rs 5300, 1000 bales from Haroonabad at Rs 5350/5400, 2000 bales from Hasil Pur at Rs 5500, 1000 bales from Sadiqabad at Rs 5800, 1000 bales from Rahim yar Khan at.Rs 5800, 1000 Mian Wali at Rs 5800/6000 and 600 bales from Ali Pur at Rs 6000.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 01.02.2012
===========================================================================
37.324 Kgs 5,700 130 5,830 5,830 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,109 130 6,239 6,239 NIL
===========================================================================