Stable trend was seen on the cotton market on Friday as the ginners and growers indulged in restricted selling to resist likely loss as a result of steady supply of seedcotton, dealers said. Official spot rate was unchanged at Rs 5,850, they said. Above, 2100 bales of cotton finalised between Rs 5500 and Rs 6000, they said.
Prices of seedcotton (phutti) in Sindh were almost unchanged at Rs 2400-2700, in Punjab, rates were at Rs 2600-2800, they said. Commenting on the present trend in the market, cotton analyst Naseem Usman said that firmness sustained due to move by the growers and ginners as they were not selling below the psychological level. He said that the mills were importing cotton from the other countries, prices could fall and generally it looks that prices are likely to retain level in the short-term.
Other brokers said that China is buying yarn and it is an encouraging factor for the mills, who are buying finest type to increase demand in the international market. According to the Reuters, the US cotton futures came off one-month highs on Thursday as early speculative buying that had boosted the commodity market petered out after disappointing US export sales data, traders said.
Fiber prices had rallied to near 74 cents on hopes that US Congress can strike a deal to avoid the so-called "fiscal cliff" by the year's end. But the market pared gains midmorning following US government sales data for the week to November 22. "Prices softened from their highs after the release of the US export sales number," said INTL FCStone analysts. The most-active March contract on ICE Futures US rose 0.72 cent, or 1 percent, to settle at 73.35 cents per lb. Prices had earlier hit 73.98 cents, a level not seen since October 23.
The following deals were reported: 200 bales from Sanghar at Rs 5500, 200 bales from Chichawatni at Rs 5800, 600 bales from Bahawalpur at Rs 5800/5900, 400 bales from Yazman Mandi at Rs 5800/5850, 1300 bales from Daranwala at Rs 5840, 1800 bales from Haroonabad at Rs 5850/5900, 1000 bales from Khanewal at Rs 5800-5900, 1000 bales from Hasilpur at Rs 5850-5900, 200 bales from Maroot at Rs 5850, 400 bales from Shah Jamal at Rs 5850, 200 bales from Bakkhar at Rs 5850, 200 bales from Qaboola at Rs 5850, 200 bales from Kasso Wal at Rs 5850, 800 bales from Saddiqabad at Rs 5900, 2000 bales from Rahim Yar Khan at Rs 5900-5950, 400 bales from Khichiwala at Rs 5900, 800 bales from Fort Abbas at Rs 5900, 400 bales from Dera Ghazi Khan at Rs 5900, 400 bales from Faqirwali at Rs 5900, 400 bales from Liaquatpur at Rs 5900, 200 bales from Kacha Kho at Rs 5900, 1000 bales from Burewala at Rs 5900/5950, 200 bales from Layyah at Rs 5900, 600 bales from Bahawal Nagar at Rs 5900/5950, 400 bales from Tonsa Shariff at Rs 5925, 1400 bales from Mianwali at Rs 5975/6000, 400 bales from Muhammadpur at Rs 6000, 400 bales from Fazilpur at Rs 6000 and 2000 bales from Rajanpur at Rs 6000, 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 29.11.2012
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37.324 Kgs 5,850 155 6,005 6,005 NIL
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Equivalent
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40 Kgs 6,269 155 6,424 6,424 NIL
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