Trading activity improved because of strong mills demand on the cotton market on Wednesday, dealers said. The official spot rate's upward trend was maintained by adding Rs 25 to Rs 4125, they said. In the ready business, the phutti prices in Sindh were at Rs 1900-1950 and in Punjab at Rs 1700-2100, they said.
According to the market sources, prices were steady as exporters and mills both were active to finalise the forward deals. It is expected that the rates may inch up as supply is not matching with the demand, they said. If rains continue in both Sindh and Punjab, the prices may push further higher and other factors such as the mealy bug and other farm diseases which may cause damage may intensify this trend, they said.
They said that despite opposition, the country has signed deals to export nearly 80,000 bales of cotton to the other countries. A leading international expert said that the world cotton prices are headed for a fundamental breakout to above 90 US cents a pound.
This would come as international production and stocks in the United States, the world's biggest exporter, shrank from more than 10 million bales last year to virtually disappear by 2010, said Ed Jernigan, managing director of FC Stone Asia.
On Tuesday, the NY cotton futures ended higher on fund buying after release of a bullish government crop report, but the lack of follow-through purchases and profit-taking pared the market's gains, brokers said.
The key December cotton contract climbed 0.89 cent to finish at 69.63 cents per lb. The contract moved from 68.72 to 71.74 cents. Volume traded in the December contract hit 11,298 lots at 2:46 pm EDT (1846 GMT).
THE FOLLOWING DEALS WERE REPORTED: some 200 bales of cotton from Arifwala sold at Rs 4250, 800 bales from Kabeerwala at Rs 4275, 200 bales from Sanghar at Rs 4125, 800 bales from Shahdadpur at Rs 4150, 200 bales from Tando Adam at the same rate, 400 bales from Mirpur Khas at Rs 4125-4140, 200 bales from Pakpattan at Rs 4150, 200 bales from Pir Mahal at Rs 4175, 400 bales from Gojra at Rs 4175-4200, same figure from Chichawatni at the same rate and 200 bales from Mongi bahal at Rs 4200, dealers said.
===========================================================
The KCA Official Spot Rate for Local Dealings in Pak 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 Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 4,125.00 50 4,225.00
Equivalent-------------------------------------------------
40 Kgs 4,421.00 50 4,521.00
===========================================================
Comments
Comments are closed.