Price may rise on cotton market tracking bullish sentiment in New York cotton futures
Market participants were hoping rates of cotton in local market may rise from the current level after bullish trend emerges in the NY cotton futures, dealers said. The official spot rate was unchanged at Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said.
In ready dealings, approximately 3000 bales of cotton changed hands at Rs 4000-5700, they added. Market sources said that mills showed no interest in the fresh cotton buying in expectations of further decline in the rates. In the meantime, ginners were hoping fresh rise in the NY cotton futures to lift the cotton prices in the local market, they said.
Otherwise, Chinese buyers' falling interest, kept the main participants in grip of uncertainties, they observed. Despite the fact that the world cotton consumption rises for the first time in three years, China will cut its cotton imports by one million bales to 16 million bales of cotton in 2012/13 from the previous year, the US Agriculture Department (USDA) said.
According to the Reuters, on Friday, the US cotton prices rallied, reversing heavy losses in the previous two sessions, as mills and some foreign buyers found price levels attractive for purchases. Benchmark May futures on ICE Futures US closed at 90.15 cents per lb, rising 0.92 cents, or 1.03 percent.
The range spanned 89.02 to 90.72, after dropping on Thursday to its lowest level since December 28 at 89.01 cents. May volume came to a light 7,863 lots in late trade. March cotton surged to finish at 89.85 cents, a 2.37 cent, or 2.71 percent, gain. It rallied to a high at 90.11, a day after falling to its lowest level since December 27 at 87.46. Friday's low was 88.22 per lb. Volume was exceptionally light at 146 lots, but Thursday was the contract's first day of deliveries.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 4000, 200 bales from Head Rajkan at Rs 4900, 400 bales from Chistian at Rs 5200, 400 bales from Hasil Pur at Rs 5200, 200 bales from Layyah at Rs 5250, 200 bales from Khici Wala at Rs 5200, 400 bales from Pir Mmahal at Rs 5300 and 400 bales from Mian Wali at Rs 5700.
===========================================================================
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 24.02.2012
===========================================================================
37.324 Kgs 5,500 130 5,630 5,630 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,894 130 6,024 6,024 NIL
===========================================================================