Ban on export of cotton by India may help the prices to stabilise or push up on the cotton market, dealers said on Monday. The official spot rate was unchanged at Rs 5,300, they said. Seedcotton prices in Sindh were at Rs 1900-2300 and in the Punjab at Rs 2000-2600, they said. In ready dealings around 2000 bales of cotton changed hands at Rs 3700-5250, they added.
As a result of Indian move, cotton prices may start recovering in the local and international market, they said. In the meantime, official spot rate and prices in the ready business were depicting no major difference owing to decline in demand following the world recession, they added. According to market sources, traders were expecting that prices would fall owing to expectations of good crop because country may achieve 15 million bales of cotton in the current season.
Power shortage and disruptions in gas supply were causing decreasing demand in trading because mills were not able to meet the orders on time, they said. The ginners were also helpless due to financial crunch as they have huge stock of unsold stock, but no purchaser, other analysts said. Now many in the market were hoping sharp recovery in the current prices after the ban on exports by Indian government, they said.
The following deals were reported: 400 bales of cotton from Mirpur Khas at Rs 3700-4200, 200 bales of cotton from Multan station at Rs 4900, 127 bales from Jahanian at Rs 4975, 400 bales of cotton from Hasil Pur at Rs 5150 and 200 bales from Ali Pur at Rs 5250.
As a result of present move by India, prices have started going up in the international market. This factor boosted the global prices by about five percent on fears that the absence of shipments from the world's second-largest producer will reduce supplies. Benchmark US May cotton futures climbed over 4.5 percent on Monday to their highest level since February 29 after the announcement, erasing a fall of 2.13 percent last week which was driven by a stronger dollar and ample global supplies. The key May cotton contract on ICE Futures US shot up the 4.00 cent daily limit to trade at 92.23 cents per lb at 9:30 am EST (1430 GMT), up 4.5 percent on the day.
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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 03.03.2012
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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