Stable trend was witnessed on the cotton market on Wednesday as buyers lay hands over the fine quality to meet their requirement, dealers said. The official spot rate held the overnight level at Rs 6,950, they added. In the ready session, over 5000 bales of cotton finalised at Rs 7200 and Rs 7250 (credit), dealers said.
The ginners have very little stock of unsold cotton and the mills and spinners trying to shed their worries over the late arrivals of crop for next season, cotton analyst, Naseem Usman said. To stabilise the rates in the local market, some analysts said that the ginners were not happy under the circumstance, demanding a total on the imports of cotton and yarn from India, ginners were facing financial problems as some millers did not clear the payment, they said. The country is going to achieve 13.6 million bales of cotton target and now the next target is 15.1 million bales for the coming fiscal 2014-15.
Reuter adds: cotton futures tumbled to a three-month low on Tuesday, after well-timed rains in Texas over the last five days have boosted expectations that output in the United States, the world's top exporter, will be higher than forecast.
The most-active July cotton contract on ICE Futures US sank as low as 84.85 cents and closed down 1.34 cent, or 1.6 percent, at 84.97 cents a lb. The front-month contract has finished lower 11 of the last 12 sessions and is poised to end May down 10 percent, its biggest such loss in seven months. "This is a million-bale rain," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas, the cotton hub. Texas is the top cotton-producing US state.
The following deals reported: 700 bales of cotton from Kazi Ahmed at Rs 5200, 1000 bales from Tando Adam at Rs 6800, 400 bales from Gojra at Rs 6925, 1604 bales from Rahim Yar Khan at Rs 6900-7000, 1000 bales from Alipur at Rs 7000, 400 bales from Mianwali at Rs 7100 and same number of bales from Khanpur at Rs 7250 (credit), dealers 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 27.05.2014
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37.324 Kgs 6,950 155 7,105 7,105 NIL
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Equivalent
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40 Kgs 7,448 155 7,603 7,603 NIL
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