Wait-and-see attitude was adopted by both the buyers and sellers on the cotton market on Thursday, to observe the fresh developments, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 4,650, dealers said.
Activity was nearly half as some 5,000 bales of cotton changed between at Rs 4500-4700. Phutti prices also came down in both Sindh and Punjab at Rs 2100-2400, dealers said. Modest gain in the NY cotton futures did not help in changing the present outlook on the local cotton ahead of the crucial meeting of the textile committee, analysts said.
The mills and exporters were ready to purchase cotton but the ginners were hasitant in finalising the deals in anticipation of further rise in the rates, they added. It was noted that slight gain in NY, failed the bring any pleasant change, instead it appeared that participants kept on the sideline due to prevailing uncertainties, caused by unprecedented rise in the prices in the local market.
Besides, cotton exports and steady mill demand will be vital for the US cotton industry in 2010, an official of the leading industry group National Cotton Council said. According to a report issued on Wednesday that the NCC vice president for economics Gary Adams said in a speech to the annual Beltwide cotton conference that "maintaining mill demand at current prices" will be critical for the industry in 2010.
A member Michael Williams of the entomology and plant pathology department of Mississippi State University, stated in a report on the same occasion that such losses caused by insects and pests to US cotton farmers in 2009 amounted to 491 million dollars. Insects, as lygus, thrips, bollworms-budworms and stink bugs caused the damage. But the pest losses were down from 543 million dollars in 2008.
On Wednesday the NY cotton futures cut initial gains to end slightly higher, as investor sentiment worsened after prices briefly fell below a key technical support. The key March cotton contract gained 0.43 cent to close at 73.55 cents per lb, trading from 73.15 to 74.27 cents. Volume traded in the March contract hit 11,308 lots at 2:29 pm EST (1929 GMT).
THE FOLLOWING DEALS WERE REPORTED: 400 bales of cotton from Pusher .More at Rs 4675, 600 bales from upper Sindh at Rs 4700, 3000 bales from Haroonabad at Rs 4500, 200 bales from Bahawal Nagar at Rs 4500 and 400 bales from Qabula at Rs 4550.
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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"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 4,650.00 100 4,750.00
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Equivalent
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40 Kgs 4,983.00 100 5,083.00
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