Prices recovered overnight losses on the cotton market on Friday following the fresh increase in the NY cotton futures, dealers said. The official spot rate gained Rs 50 to Rs 5300, dealers said. Approximately, 3,000 bales of cotton changed hands between Rs 4000 and Rs 5500, they said. The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said.
Market sources said that locally demand is rising with the passage of time due to tight supply position. The buyers showed interest in new deals due to surge to cover the immediate needs, cotton analyst, Naseem Usman said. Other brokers said that rates of lint cotton may show further increase in the coming days. Cotton production showed slight recovery this year and it is also expected that the output may rise next year, they said.
Reuters adds: Cotton futures hit a more than one-week high on Thursday in their largest single-session gain since August 2012 after a US government report showed export sales of 144,900 bales in the prior week, well above market expectations.
"The market just kind of caught fire here today," said Sharon Johnson, introducing broker with Wedbush Securities in Atlanta, Georgia, noting that mills had resumed buying after being absent much of the prior two weeks. "We had to come down a lot to get it to go back up." Cotton contracts for July on ICE Futures US settled up by 2.53 cents on Thursday, a four percent gain, at 65.45 cents per pound. It traded within a range of 62.70 and 65.71 cents a pound.
The following deals reported: 1000 bales of cotton from Mirpurkhas at Rs 4000-4100, 400 bales from Ghotki at Rs 5300-5400, 500 bales from Yazman Mandi at Rs 5275, 400 bales from Layyah at Rs 5400, 600 bales from Bahawalpur at Rs 5500 and 300 bales from Vehari at the same rate, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 23.04.2015
===========================================================================
37.324 Kgs 5,300 150 5,450 5,400 +50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,680 160 5,840 5,786 +54
===========================================================================
Comments
Comments are closed.