Rising trend was again witnessed on the cotton market on Monday as the ginners raised the asking prices, dealers said. Official spot rate was higher by Rs 150 to Rs 6000, they added. Prices of seedcotton in Sindh were higher at Rs 2200 and Rs 2400, while, in the Punjab rates were unchanged at Rs 2200 and Rs 2800, they said.
In ready business, 3000 bales of cotton changed hands between Rs 5250-7000, they added. Market sources said that tight supplies caused rise in the prices and may rise further in the near future. Delayed sowing in some parts of cotton growing areas was another factor behind the fresh increase in prices, they added. Naseem Usman said that wheat crop is ready, but fresh rains in the belt likely to hurt wheat harvesting, this factor is delaying the cotton sowing. He expected that the new cotton arrival would start by middle of July this year. The cotton growers were facing some kind of uncertainties due to change of weather, all were hoping for approximately, 18 million bales of cotton for the new season, after achieving nearly 15 million bales of cotton for the current season, Naseem Usman said.
Furthermore, cotton crops just planted in China's north-western province of Xinjiang have been damaged by a heavy sandstorm over the past week, but there will be limited impact on this year's harvest, analysts said on Monday. China is one of the leading producer and consumer of cotton. A fall in its domestic supply, which rose to 11 percent last year to 6.6 million tonnes, could hoist imports world prices.
The following deals were reported: 200 bales of cotton from Burewala sold at Rs 5250, 300 bales of cotton from Layyah at Rs 5700, 419 bales of cotton from Arif Wala at Rs 5850-6000, 1000 bales of cotton from Shahdan Lund at Rs 6000, 103 bales of cotton from Faqirwali at Rs 6500 and 600 bales of cotton from Mian Wali at Rs 7000.
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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 21.04.2012
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37.324 Kgs 6,000 130 6,130 5,980 +150
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Equivalent
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40 Kgs 6,430 130 6,560 6,339 +161
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