Wait-and-see attitude was adopted both by the mills and ginners on the cotton market on Tuesday just to see the latest development world over, dealers said. The official spot rate was unchanged at Rs 5,600, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said.
In ready dealings, approximately 6000 bales of cotton changed hands at Rs 4100-5800, they added. The general trend in the market was weak as mills and ginners were not interested in the buying of cotton to keep a check the market direction after continued fall in the NY cotton market, analysts said.
They also said that the ginners are also not in a hurry to sell the unsold stock as they don't want to lose profit. On Monday, NY cotton futures gave up weakness, recover sharply, now the participants were watching the next direction in the US cotton market, they said.
Naseem Usman said that if China entered the market for purchasing, cotton prices are likely to improve the world over. In the meantime, rates may not fluctuate sharply in the coming days. Reports showing that cotton prices in India, the world's second-largest exporter and producer of the fibre, are expected to fall this week on lower demand from exporters and yarn makers, and on higher supplies in spot markets. "Demand from China is low, and as the harvesting of other winter-sown crops is about to begin, farmers are also under pressure to sell cotton to create space," said Ghanshyam Ladha, a trader based in the western Indian state of Gujarat, the top domestic producer of the fibre.
Prices could rise again after March, when the arrival season would come to an end, Ladha said. On Monday, the US cotton futures ended stronger, pulled up by other commodities, global equities and the euro, as investors raised their risk profiles after the Greek parliament voted to adopt austerity measures to handle the country's debt crisis.
Two separate cotton planting estimates released on Saturday and Monday contributed to price gains, but analysts said both were regarded more as a starting reference for the fiber's crop season than a substantive indication of eventual output. As such, most cotton observers took note, but did not necessarily take positions based on either report.
"The NCC report was a helpful number and was behind the rally to some degree, but I think the Greek parliament voting on the austerity plan was really what pushed commodities up across the board," said Sharon Johnson, senior cotton analyst at Penson Futures in Atlanta.
Benchmark March cotton on ICE Futures US finished with 0.91 cent, or 1.0 percent, gains at 91.54 cents per lb, after trading between 90.62 to 93.05 cents a lb. The following deals were reported: 400 bales of cotton from Shahdad Pur sold at Rs 4100, 400 bales from Mir Pur Khas at Rs 4150, 400 bales from Kotri (two-month credit) at Rs 4900, 200 bales from Hala at Rs 4900, 200 bales from Hala at Rs 5100, 400 bales from Dahran Wala at Rs 5200, 600 bales from Hasil Pur at Rs 5450-5500, 400 bales from Basti Malook at Rs 5700, 400 bales from Jalal Pur at Rs 5700, 400 bales from Rajan Pur at Rs 5700, 400 bales from Khan Pur at Rs 5800, 1000 bales from Sadiqbad at Rs 5800and 400 bales from Mian Wali at Rs 5800.
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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 13.02.2012
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37.324 Kgs 5,600 130 5,730 5,730 NIL
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Equivalent
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40 Kgs 6,002 130 6,132 6,132 NIL
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