Ginners and growers indulged in cautious selling of seed cotton on short crop and partly because of expectations of rise in dollar's value, dealers said on the cotton market on Thursday. As a result of strong demand, the official spot rate was higher by Rs 100 to Rs 5500, dealers said. In Sindh, seed cotton prices were at Rs 2500 and Rs 3300 and in Punjab rates were at Rs 2600 and Rs 3200, they said.
In the ready business, nearly 15,000 bales of cotton were finalised between Rs 4900 and Rs 5750, they said Market sources said that prices are picking up due persistent buying by the mills and spinners despite the fact that approximately 14 lac bales of cotton have been imported, mostly from India.
Cotton analyst, Naseem Usman also said that the dollar is stabilised versus the rupee but traders were anticipating for further gain in the value of the greenback. Since, the current fiscal year, started the rupee has lost over 3 percent against the dollar, experts said. The ginners were not showing interest in selling at the present levels, he added.
Reuters adds: ICE cotton futures rose in light volume on Wednesday, as rains in cotton-growing regions continued, while many market participants were reluctant to take positions ahead of an industry event and an export sales report expected Thursday.
December cotton on ICE Futures US settled up by 0.33 cent on Wednesday, a 0.5 percent gain, at 62.67 cents per pound. It traded within a range of 62.20 and 62.90 cents a pound. The following deals reported: 600 bales of cotton from Sanghar at Rs 4900, 200 bales from Hyderabad at Rs 4900, 200 bales from Khadro at Rs 4900, 200 bales from Shahpur Chakar at Rs 5100, 400 bales from New Saeedabad at Rs 5225, 1000 bales from Nawabshah at Rs 5300-5400, 3000 bales from Khairpur at Rs 5450-5500, 2000 bales from Upper Sindh at Rs 5600-5700, 400 bales from Burewala at Rs 5300, 400 bales from Haroonabad at Rs 5650, 200 bales from Faqirwali at Rs 5675, 400 bales from Yazman Mandi at Rs 5700, 400 bales from Ahmedpur at Rs 5700, 600 bales from Sadiqabad at Rs 5700, 400 bales from Rahim Yar Khan at Rs 5700, 200 bales from Mian Chano at Rs 5700, 400 bales from Fort Abbas at Rs 5700, 800 bales from Mohammadpur Dewan at Rs 5700-5750, 600 bales from Rajanpur at Rs 5700-5750, 1000 bales from Layyah at Rs 5700-5750, 800 bales from Fazilpur at Rs 5700-5750, 400 bales from Mianwali at Rs 5750 and 200 bales from Dera Ghazi Khan at Rs 5750, dealers 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 28-10-2015
===========================================================================
37.324 kg 5,500 135 5,635 5,535 +100
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,894 145 6,039 5,932 +107
===========================================================================