Prices further eased on the cotton market on Wednesday in process of slow demand by mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 9,000, they said. In Sindh and Punjab phutti price of low type was at Rs 2500 and that of superior type at Rs 3000, they said.
In ready business over 2000 bales of cotton changed hands between Rs 7400-8500, they added. According to the market sources ginners showed no interest in keeping the unsold stock, which is not enough now. Other brokers said that the mills were still hoping for decline in the prices in the coming days. To bring stability in the prices, APTMA chairman said the spinning mills will be closed for three days in a week, they said.
On Tuesday the US cotton futures finished higher on investor buying inspired in part by floods in parts of the US Delta, and drought in Texas provided support for fiber contracts, analysts said. The key July cotton contract on ICE Futures US rose 3.06 cents to close at $1.5751 per lb, trading from $1.5356 to $1.4887 cents.
The new-crop December cotton futures added 1.31 cents to close at $1.2837 cents per lb. Volume traded stood at almost 11,500 lots, over 50 percent below the 30-day norm, Thomson Reuters preliminary data showed. Despite Tuesday's surge in values, open interest in the cotton market dropped to 151,977 lots as of Monday, May 2, its lowest level since October 12, 2009, data from ICE Futures US showed. Open interest is normally seen as an indicator of investor interest in the market and analysts feel the falling level of such interest in cotton futures indicates that investors' appetite for cotton is flagging.
The following deals were reported: 400 bales of cotton from Shahdad Pur sold at Rs 8400, 200 bales of cotton from Sanghar at Rs 8400, 400 bales from Vehari at Rs 8500, 400 bales from Dera Ghazi Khan at Rs 8500, 400 bales from Liaquat Pur at Rs 8000, 500 bales from Shujabad at Rs 8150 and 200 bales from Chichawatni at Rs 7400, they added.
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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 03.05.2011
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37.324 Kgs 9,000 120 9,120 9,120 NIL
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Equivalent
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40 Kgs 9,645 120 9,765 9,765 NIL
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