An upward trend prevailed on the cotton market on Tuesday as official spot rate gained sharply amid modest trading, dealers said. The Karachi Cotton Association (KCA) raised official spot rate by Rs 100 to Rs 6,500, they said. In the ready business, nearly 2000 bales of cotton changed hands between Rs 5125-6800, dealers said. Prices for seed cotton per 40 kg from Sindh at Rs 3000-3050, they said.
Cotton analyst Naseem Usman said that monsoon rains delayed in cotton belt, rains are expected in first week of July or last week of current month. Some leading analysts were of the view that mills covered their short position as five ginning factories may start operation in Sindh and the Punjab, they said. Other experts said that businessmen are facing liquidity crunch, so they are not able to make decision quickly, particularly for purchasing of the cotton, the government is trying to collect maximum revenue and taxes to revive economic activity in the country, they added, aiding sowing operations.
Reports showing that cotton prices in India are expected to fall this week as traders may book profit after recent gains and on the good progress of the monsoon, though dwindling supplies are seen restricting the downside. Rains have covered the entire country a month ahead of schedule.
According to the Reuters, the ICE cotton futures tumbled on Monday, as investors took profits after last week's steep gains when prices climbed almost to a one-year high touched in mid-March. The most-active December cotton contract on ICE Futures US closed down 0.45 cent, or 0.5 percent, at 88.99 cents, finishing down for the first time in four sessions. The third month contract reached 89.56 cents on Friday, its highest level since April.
The ICE front month July contract plunged 3.86 cents, or 4.2 percent to close at 87.43 cents a lb, after touching 92.58 cents on Friday, the strongest level since hitting a one-year high of nearly 94 cents in mid-March. The following deals reported: 300 bales of cotton from Mirpurkhas sold at Rs 5125, 1000 bales from Shair Sultan at Rs 6700, 100 bales from Khairpur Tamewali at Rs 6700 and 400 beles from Alipur at Rs 6800, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 17.06.2013
===========================================================================
37.324 Kgs 6,500 155 6,655 6,555 +100
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,966 155 7,121 7,014 +107
===========================================================================
Comments
Comments are closed.