Forward buying by mills and spinners ahead of Muharram holidays, improved trading on the cotton market on Tuesday, dealers said. Official spot rate was unchanged at Rs 5,900, they said. Nearly 16,000 bales of cotton changed hands between Rs 5700-6100, they said.
Prices of seedcotton (phutti) in Sindh low type was inert at Rs 2550 while fine type shed Rs 50 to Rs 2700, in Punjab low type price was unchanged at Rs 2600 but fine variety was down by Rs 50 to 2850, they said. Market sources said the despite the statement by the All Pakistan Textile Mills Association (APTMA), in which it informed that industry to be left with two million surplus cotton bales by year end, the mills covered the short-term need ahead of long week-end.
Commenting on the remarks, cotton analyst, Naseem Usman said that it looks that prices may decline in the coming days due to better-than-expected cotton production for the current season. Mills and spinners are relaxed because they are not feared about the supply of cotton, they said. Supply position is good but demand is low due to weak economic outlook of the world, they added. The other factor, India has unsold cotton stock because, China is not showing its interest in fresh buying owing low demand by importing countries, they said.
According to the Reuters, the US cotton futures closed lower for a second day on Monday as concerns about weak supply-and-demand fundamentals and profit taking offset fresh hope that the United States can prevent automatic spending cuts and tax increases. It is believed that the spending cuts and tax increases would push the United States into a recession. Hope for a deal to prevent that rallied equity markets and a number of commodity markets. The most-active December cotton contract on ICE Futures US settled down 0.68 cent, or 0.93 percent, at 72.05 cents per lb. The roll over ahead of first notice day on Friday and the expiry of the December contract also pressured prices.
Following deals reported: 400 bales from Shahdadpur at Rs 5700, 800 bales from Sanghar at Rs 5700, 200 bales from Mir Pur Khas at Rs 5700, 400 bales from Nawab Shah at Rs 5800, 2000 bales from Khairpur at Rs 5950/6000, 1200 bales from Upper Sindh at Rs 6025/6050, 200 bales from Bakhar at Rs 5900, 200 Yazman Mandi at Rs 5900, 200 bales from Faqir Wali at Rs 5900, 400 bales from Shujabad at Rs 5900, 400 bales from Bahawal Nagar at Rs 5900, 400 bales from Chistian at Rs 5900, 1000 bales from Bahawalpur at Rs 5900/5950, 1600 bales from Haroonabad at Rs 5950/6000, 400 bales from Hasilpur at Rs 6000, 400 bales from Sadiqabad at Rs 6000, 1000 bales from Rahim Yar Khan at Rs 6000, 400 bales from Dera Ghazi Khan at Rs 6000, 200 bales from Kassowal at Rs 6000, 800 bales from Khanewal at Rs 6000, 400 bales from Sahiwal (Credit) at Rs 6050, 800 bales from Rajanpur at Rs 6050/6100 and 3000 bales from Mianwali at Rs 6050/6100, they said.
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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 19.11.2012
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37.324 Kgs 5,900 155 6,055 6,055 NIL
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Equivalent
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40 Kgs 6,323 155 6,478 6,478 NIL
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