Trading improves, prices firm on cotton market as exporters play active role
Firmness prevailed on the cotton market on Tuesday as exporters played an active role in cotton purchasing, dealers said. The official spot rate was unchanged at Rs 5,700, they said. Prices of seedcotton in Sindh were at Rs 1800-2400 and in the Punjab at Rs 2000-2700, they said.
In ready dealings trading activity improved, resultingly approximately 9,000 bales of cotton changed hands at Rs 4,400-6000, they added. As a whole, business activity improved as both buyers and sellers fond a meeting ground, which helped them to finalise deals, dealers said. As a result of cut in cotton production in many cotton producing countries, exporters are buying cotton in expectations of rising demand by the cotton importing countries, Naseem Usman said.
In India, cotton production estimate cut down due to fall, same situation is in Australia as fresh rains damaged cotton crop, all these factors are improving cotton buying by the exporters and also soothing to the ginners, who are still in grip of fears due to decline in the prices, Naseem added. Other brokers said that cotton crop in China also came down and it is very much likely, prices will keep firm in the coming days.
On Monday the NY cotton futures settled marginally lower in the nearby month as the market consolidated while awaiting release of a pair of reports at the end of the week, analysts said. Benchmark March cotton on ICE Futures US slipped 0.03 cent to finish at 96.31 cents per lb, dealing from 95.90 to 97.26 cents. It was an inside day since the range was within Friday's 94.12 to 97.86 cents band. Volume traded on Monday stood at over 24,400 lots, more than two-thirds above the 30-day average, according to preliminary Thomson Reuters data.
Reuters adds The following deals were reported: 400 bales of cotton from Mir Pupr Khas sold at Rs 4400, 1000 bales from Mehrab Pur at Rs 5650, 1000 bales from Rahim Yar Khan at 6000, 400 bales from Sadiqabad at Rs 5900, 400 bales from Lodhran at Rs 5850, 600 bales from Rajan Pur at Rs 5800, 1000 bales from Mian Wali at Rs 5800, 600 bales from Dera Ghazi Khan at Rs 5875, 400 bales from Hasil Pur at Rs 5500 and 2000 bales from Bahawal Pur at Rs 5800.
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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 06.02.2012
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37.324 Kgs 5,700 130 5,830 5,830 NIL
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Equivalent
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40 Kgs 6,109 130 6,239 6,239 NIL
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