Modest activity was witnessed on the cotton market on Saturday as mills took interest in good quality following the prediction of monsoon heavy rains and floods in Sindh and Punjab, dealers said. Official spot rate was unchanged at Rs 5,800, they added. In ready business over 4000 bales of cotton changed hands between Rs 5400-6200, they said.
According to the market sources, new phutti arrivals have started now but if heavy rains start in the cotton belt it may cause delay in arrivals and likely damage to the crop, as well. These fears propelled mills to purchase available cotton, because the quality is not so bad, they said. In the meantime, the ginners, who have unsold stock but small, can make good profit, they added.
According to the Reuters, the NY cotton futures finished higher on Friday mainly on book squaring by investors who are looking ahead to voting in Greece on Sunday, which could potentially roil financial markets next week if Athens decides to abandon the euro zone. The key December cotton contract on the ICE Futures US exchange rose 0.42 cent to finish at 71.02 cents per lb, dealing from 70.37 to 71.59 cents. It was an inside day since the range is within Thursday's 70.01 to 73.08 cents band. The spot July cotton futures climbed 1.89 cents to close at 79.98 cents per lb. The spread between July and December is at its widest since early June 2011, according to Thomson Reuters data. Volume traded on Friday stood near 37,500 lots, over 50 percent above the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 513 bales of cotton from Dharki -credit- sold at Rs 6200, 633 bales of cotton from Dera Gazi Khan at Rs 5400, 200 bales of cotton from Vehari at Rs 5900, 800 bales of cotton from Shair Sultan at Rs 6000 and 1800 bales from Rahim Yar Khan at Rs 6200.
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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 15.06.2012
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37.324 Kgs 5,800 130 5,930 5,930 NIL
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Equivalent
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40 Kgs 6,216 130 6,346 6,346 NIL
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