Business activity came down on the cotton market on Thursday as both buyers and sellers were not very active ahead of Eid-ul-Azha holidays, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,450, they said. Prices of seedcotton of low type in Sindh were at Rs 2000 and rates of fine type fell by Rs 100 to 2400, rates in Punjab were inert at Rs 2200-2600, they said.
In ready dealings about 15,000 bales of cotton changed hands between Rs 3,800-5,600, they added. Market sources said that most of the participants showed no interest due to the transportation problems as owners of trucks were charging double rate, not affordable, ahead of Eid-holidays. Naseem Usman said that the Pakistan Cotton Ginners Association (PCGA) issued fortnightly report as phutti arrival till October 31 was nearly 6.7 million bales, showing a net rise of 10.41 percent against the last year.
How the market will move it will be clear after holidays as NY cotton future are down these days and keeping the prices on bottom side in the local market, other analysts said. On Wednesday the NY Cotton futures ended lower on speculative sales as worries over the protracted euro zone debt crisis kept investors on the defensive, dealers said.
The key December cotton contract on ICE Futures US dropped 1.20 cents or 1.2 percent to conclude at 98.34 cents per lb, moving from 98 cents to $1.007. Total volume traded on Tuesday hit over 20,000 lots, over one-third above the 30-day norm, preliminary Thomson Reuters data and ICE Futures US data showed. On Friday, the contract ended at $1.0437 in the highest settlement close for spot cotton in six weeks in initial euphoria that the European debt crisis has been resolved.
The following deals were reported: 800 bales of cotton from Mir Pur Khas sold at Rs 3800/4000, 400 bales of cotton from Kotri at Rs 4600, 400 bales of cotton from Shahdad Pur at Rs 4600, 400 bales of cotton from Sakrand at Rs 4650, 1000 bales of cotton from Khair Pur at Rs 5100/5300, 1000 bales of cotton from Upper Sindh at Rs 5300, 200 bales of cotton from Dunia Pur at Rs 5175, 600 bales of cotton from Ahmed Pur at Rs 5350/5400, 200 bales of cotton from Shujabad at Rs 5350, 600 bales of cotton from Khan Pur at Rs 5400, 1000 bales of cotton from Bahawal Pur at Rs 5400/5500, 800 bales of cotton from Burewala at Rs 5400/5500, 400 bales of cotton from Pul Bagharh at Rs 5400, 1000 bales of cotton from Ali Pur at Rs 5400, 800 bales of cotton from Kabirwala at Rs 5400/5500, 1200 bales of cotton from Gojra at Rs 5400, 800 bales of cotton from Sillanwali at Rs 5400, 400 bales of cotton from Hasil Pur at Rs 5400, 400 bales of cotton from Rajan Pur at Rs 5500, 1000 bales of cotton from Khanewal at Rs 5500, 200 bales of cotton from Mian Wali at Rs 5600.
===========================================================================
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 02.11.2011
===========================================================================
37.324 Kgs 5,450 130 5,580 5,580 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,841 130 5,971 5,970 NIL
===========================================================================
Comments
Comments are closed.