Prices maintained upward journey on the cotton market on Tuesday as mills and spinners both indulge in fresh buying on rising anticipation that rates may go up gradually amid tight supply, dealers said. The official spot rate was unchanged at Rs 6,600, they said. In the ready business, nearly 7,000 bales of cotton changed hands between Rs 6650-6750, dealers said. Prices of seed cotton per 40 kg in Sindh were unchanged at Rs 3150-3200, while in Punjab prices were at Rs 3100-3250, they said.
Cotton analyst, Naseem Usman said that tight supply position did not allow prices to go down, instead it was expected that rates might go up in the coming days. The mills and spinners might take more interest in buying before Eid-ul-Fitr holidays, in the meantime, if monsoon rains which were expected next week, continued long-time, it might propel ginners to increase prices because of short supply of seed cotton, other experts said.
Report showing that China's cotton imports fell 22 percent in June compared to the previous month to 269,800 tonnes, the China Cotton Association said on Tuesday. Imports of the fibre were 43.3 percent lower than in the same month of last year, the association added citing data from China's customs.
Besides, cotton prices in India are expected to trade lower this week on brisk sowing due to ample and early rains in leading cultivating areas, though a squeeze in local supplies amid good demand from local millers is seen limiting the downside. According to the Reuters, Cotton futures finished mostly lower on Monday, hurt by forecasts for badly needed rains on dry Texas cotton-growing lands and expectations for slower demand after India raised interest rates.
Most active December cotton futures on ICE Futures US was the only contract to end with gains. It edged up 0.02 cent to close at 85.10 cents a lb in light volume of 6,162 lots. The rest of the board all posted moderate losses. The following deals reported as 600 bales of cotton from Sanghar sold at Rs 6750, 400 bales from Mir Pur Khas at Rs 6750, 400 bales from Shahdad Pur at Rs 6750, 400 bales of cotton from Kotri at Rs 6750, 200 bales of cotton from Pak Pattan at Rs 6650, 400 bales of cotton from Mian Chano at Rs 6650-6675, 300 bales of cotton from Arif Wala at Rs 6700, 200 bales of cotton from Hasil Pur at Rs 6700, 1000 bales of cotton from Khanewal at Rs 6700, 1000 bales of cotton from Chichawatni at Rs 6700, 800 bales of cotton from Haroonabad at Rs 6700 and 3,000 bales of cotton from Burewala at Rs 6700, they added.
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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 15.07.2013
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37.324 Kgs 6,600 155 6,755 6,755 NIL
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Equivalent
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40 Kgs 7,073 155 7,228 7,228 NIL
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