Rates managed to recover modestly on the cotton market on Friday in the process of rising demand by mills and spinners, dealers said. The official spot rate rose by Rs 50 to Rs 5450, dealers said. In the ready session, over 4000 bales changed hands between Rs 5150-5625, they said. According to the market sources, dollar's appreciation in the world and local markets propelled the buyers to make deals despite higher rates.
Sharing the same views, cotton analyst, Naseem Usman said that current trend is bullish in the global market due to several factors. So that it appeared that prices to move up in times to come despite the fact that uncertainties are hovering over the issue of Gas Infrastructure Development Cess (GIDC), other experts said.
Reuters adds: ICE cotton futures had their largest single-session gains since April 24 on Thursday as the US dollar ended a four-day rally, falling against a basket of currencies and pressuring greenback-traded commodities like cotton. Cotton contracts for July on ICE Futures US settled up by 1.28 cents on Thursday, a 2 percent gain, at 64.33 cents per pound. It traded within a range of 63.03 and 64.54 cents a pound. The December contract's premium to front-month July cotton fell to 0.73 cent per lb, down from 0.98 cent the prior session. Total futures market volume rose by 589 to 25,769 lots. Data showed total open interest fell 458 to 188,261 contracts in the previous session.
The following deals reported: 1000 bales (mill to mill) at Rs 5600, 2000 bales from Behrabpur at the same rate (conditional), 200 bales from Lodhran at Rs 5150, same figure from Bahawalpur at Rs 5400, 724 bales from Alipur at Rs 5550 and 400 bales from Khanpur at Rs 5625, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 28.05.2015
===========================================================================
37.324 Kgs 5,450 150 5,600 5,550 +50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,841 160 6,001 5,947 +54
===========================================================================