A lacklustre mood persisted on the cotton market on Saturday in the absence of leading buyers, dealers said. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices at Rs 1800 and Rs 2800, they said.
In the ready business, over 4000 bales of cotton changed bands at Rs 5350, they said. According to the market sources, global factors including slow off-take of cotton yarn and fabrics were adversely impacting sentiment. So, as a whole cotton trade is depressed in the world market, they added. Some experts attributed the decline to indications of a recession. Cotton analyst, Naseem Usman said that these factors keeping cotton business under pressure these days.
To overcome the crises, the Karachi Cotton Association (KCA) called a meeting with all stake-holders on March 15, 2016, he said. Besides, reports showing that cotton output has fallen 34 percent this season due to bad weather in key growing regions, figures released by the Pakistan Cotton Ginner's Association (PCGA) showed the largest decline in 40 years.
Adds Reuters: Cotton futures rose more than 1 percent on Friday as a weaker dollar and gains across broader commodities markets helped offset speculator selling, spurring a small recovery in prices from 6-1/2-year lows earlier this week. The cotton market will likely see a rebound once the selling pressure eases "in a matter of days," Peter Egli, director of risk management at British merchant Plexus Cotton, said in a note.
On Monday, prices hit 54.53 cents, their lowest since June 2009, amid concerns over demand for the natural fiber and the release of a massive stockpile held by China. The May contract on ICE Futures US settled up 0.7 cent, or 1.24 percent, at 57.11 cents per lb, after climbing as high as 57.2 cents. The contract closed the week down about 0.73 percent, registering the second straight week of losses. The following deals reported: 4,100 bales from Sadiqabad at Rs 5350 and 400 bales from Rahim Yar Khan 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 04-03-2016
===========================================================================
37.324 kg 5,200 135 5,335 5,335 NIL
Equivalent
40 kgs 5,573 145 5,718 5,718 NIL
===========================================================================
Comments
Comments are closed.