Firm trend was witnessed on cotton market on Tuesday as mills continued forward buying due to prevailing levels were matching with export parity, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2800, dealers said.
In the ready business during the day most of the deals finalised between Rs 2840-2900. Phutti prices did not show major change in the overnight levels at Rs 1325-1350 in Punjab but in Sindh, it improved with Rs 25 gain at Rs 1425-1450, they said.
According to the market sources, due to rising trend in the phutti arrivals growers adopted a strategy to keep prices at a certain level. They observed that they kept on the sidelines and stop dumping of phutti in ginneries, but some of them were afraid and said this factor may cause damaged to crop in the fields, which can result in shortage.
Commenting on the Pakistan Cotton Ginners Association (PCGA) fortnightly report Naseem Usman, Chairman of Karachi Cotton Broker Forum (KCHF) said that association released the figure at 1.012808 million bales of cotton till September 15.
He hoped that phutti arrival figure to touch nearly 1.5 million bales by 1st of October which will be nearly 0.5 million bales above the last year figure of 1.13 million bales.
This factor may keep the ginners unnerved and propelled them to sell below the psychological level, some other brokers said. The New York cotton market was higher amid speculative buying as the ICE Futures open-outcry December cotton contract increased 0.82 cent to close at 64.43 cents per lb., trading from 63.35 to 64.63 cents.
It was the highest close for the contract in 1-1/2 months. March cotton added 0.79 cent to 67.43 cents. The rest increased from 0.50 to 0.90 cent. The ICE electronic cotton market showed the December contract 0.82 cent higher at 64.43 cents at 2:53 pm EDT (1853 GMT), moving from 63.37 to 64.61 cents.
The following deals were done : 1000 bales of cotton from Sangharr at Rs 2850/2875, 200 bales from Khipro at Rs 2850, 200 bales from Noabad at Rs 2850, 1200 bales from Tando Adam at Rs 2885/2900, 200 bales from Mirpurkhas at Rs 2875, 600 bales from Shahdadpur at Rs 2885, 1000 bales from Bahawalpur at Rs 2840/2870, 200 bales from Gojra at Rs 2885, 400 bales from Hasilpur at Rs 2850/2875, 800 bales from Mian Channu at Rs 2850/2875, 400 bales from Khanewal at Rs 2850, 200 bales from Jahanian at Rs 2865, 200 bales from Bhawalnagar at Rs 2850, 1000 bales from Sahiwal at Rs 2850, 1400 bales from Hyderabald at Rs 2850, 400 bales from Madrassa at Rs 2850, 200 bales from Pakpatan at Rs 2850, 600 bales from Arifwala at Rs 2850 and 200 bales from Multan at Rs 2850, they 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"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.32 Kgs 2800.00 50 2850.00
Equivalent-------------------------------------------------
40 Kgs 3001.00 50 3051.00
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