Trading activity improved on the cotton market on Thursday as the ginners preferred to sell low quality stuff but hesitant in making deals for fine variety in expectations of rise in the prices, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, 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 4,000 bales of cotton changed hands between Rs 7,300-8,500, they added. Commenting on the prevailing trend in the market, some cotton experts said that no big change was seen in present scenario as mills were interested in buying of best quality but the ginners showed no interest on hopes for better profit in the coming days.
They also said that most of them adopted firm attitude towards prices because cotton prices again showing steep gain in the NY cotton market, so they expect for a robust increase in the local prices, but it looks somewhat difficult in the near future because arrivals of new crop are not very far.
Besides, no panic buying was seen, particularly by the major cotton importing countries such as China. The report are reaching the market that new crop is in good condition due to favourable weather, they said. On Wednesday the US cotton futures finished with strong gains as traders feared the cotton being readied for prompt delivery would leave stocks depleted for the July contract once it expires, analysts said. Key July cotton contracts on ICE Futures US jumped 4.82 cents to finish at $1.5986 per lb, a three percent rise. It traded in a higher range from $1.5530 to $1.6080, a level last seen on April 26. Volume climbed to around 20,000 lots, but remained below the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 7300, 400 bales from Mir Pur Khas at Rs 7300-7700, 100 bales of cotton from Dunia Pur at Rs 8000, 400 bales from Rajan Pur at Rs 8500, 1000 bales from Rahim Yar Khan at Rs 8500, 1206 bales from Burewala at Rs 7650, 148 bales from Haroonabad at Rs 7900, 368 bales from Shujabad at Rs 7900, 476 bales from Sadiqabad at Rs 7800, 200 bales from Jalal Pur at Rs 7950 and 200 bales from Tibba Sultan at Rs 8000.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak 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 18.05.2011
===========================================================================
37.324 Kgs 8,500 120 8,620 8,620 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 9,109 120 9,229 9,229 NIL
===========================================================================
Comments
Comments are closed.