Panic buying was seen in the cotton market on Wednesday as the mills were trying to grab all the lots offered by the ginners at the prevailing rates after the food minister statement, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 2875, dealers said.
Phutti prices were in Sindh at Rs 1475-1500 and in Punjab at Rs 1500-1550, dealers said. They said that after the downward revision of the cotton crop estimate for the current year, the mills and spinners resorted to hectic buying. Ihe Food, Agriculture and Live Stock Minister Sikandar Hayat Khan Bosan in the meeting of the Federal Committee on Agriculture said on Wednesday the first assessment of cotton production for the 2007-08 will be 12.807 million bales.
According to the market sources, the mills were interested in the forward buying instead of bargaining with the ginners. Under the circumstances they preferred to buy at the present price levels.
The chairman of Karachi Cotton Broker Association Naseem Usman has said that Mealy bug and other firm viruses damaged nearly 1.3 million or 13 lakhs bales of cotton after the monsoon rains. It looks that the country may need to increase the import figure, some dealers said.
The New York cotton futures move up as the ICE Futures' open-outcry December cotton contract settled up 0.39 cent at 65.26 cents per lb., after trading as low as 64.60 cents. The high for the day was 65.60 cents. The contract hit three-month highs on Friday, resulting in profit taking on Monday.
The following deals reported: 200 bales from Khipro sold at Rs 2925, 2000 bales from Sultanabad at Rs 2925/2950, 200 bales from Buchrim at 2950, 800 bales Shahdadpur at Rs 2950/2975, 200 bales from Sanghar at Rs 2925, 200 bales from Daur at Rs 2950 400 bales from Nawabshah at Rs 2950, 400 bales from Khairpur at Rs 2985/3000, 200 bales from Sira Lund at Rs 3025, 1200 bales from Rahim Yar Khan at Rs 2975/3020, 1000 bales from Rajanpur at Rs 3025, 400 bales from Fazilpur at Rs 3025, 400 bales from Dera Gazi Khan at Rs 3000, 400 bales from Hasilpur at Rs 3000, 400 balse from Murid Wala at Rs 3000, 600 from Pak Patan at Rs 3000, 200 from Shujabad at Rs 3000, 2000 bales from Rajaat Rs 3000, 600 bales from Gojra at Rs 3000, 600 from Mongi Bangla at Rs 3000, 400 bales from Ali Pur at Rs 3000, 600 bales from Bahawalpur at Rs 2975, 200 bales from Bahawalpur at Rs 2950, 400 bales from Jalal Pur at Rs 3000, 600 bales from Layyah at Rs 2975/3000, 200 bales from Arif Wala at Rs 2950 and 600 bales from Hyderabad at Rs 2900/2925, 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 2875.00 50 2925.00
Equivalent-------------------------------------------------
40 Kgs 3081.00 50 3131.00
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