Strong mill buying was seen on the cotton market on Saturday as ginners lowered the rates, but not below the psychological level, dealers said. The official spot rate was unchanged at Rs 3475, they said. Phutti prices were lower in Sindh at Rs 1650-1750 and in Punjab the rates were inert at 1600-1700, (per 40 kg), they added.
The trend in the market was soft as mills were not ready to pay higher rates, but it appeared that the ginners adopted the flexible attitude towards the rates following the market anticipation that the production is good for the current season, some brokers said.
If, exporters entered the market, prices may not decline sharply, they apprehended. It is expected that lucrative dollar may propel exporters for new purchasing, they added.
On Friday, the NY cotton futures closed near a 1-1/2 year low as the selling spree from the global financial crisis and a very bearish government crop report deflated the market, brokers said. The benchmark December cotton contract dropped the 3.00-cent limit to conclude at 49.44 cents per lb, with the session peak at 51.60 cents.
On the spot weekly charts, it was the lowest close for cotton since mid-May 2007. Since the spot contract finished trading at the start of September at 67.91 cents, the contract has lost 27.19 percent in value. March ended the 3.00-cent limit down at 53.87 cents. Volume traded in the December contract stood at 11,465 lots at 2:41 pm (1841 GMT).
The following deals were reported: 1600 bales of cotton from Mirpur Khas sold at Rs 3400-3425, 2000 bales from Shahdadpur at Rs 3450-3550, 1200 bales from Sarhari at Rs 3475-3550, 2200 bales from Tando Adam at Rs 3450-3550, 400 bales from Khipro at Rs 3450, 800 bales from Khanewal at Rs 3500-3525, 400 bales from Gojra at Rs 3500, 400 bales from Jahanian at Rs 3500, 200 bales from G.Raja at Rs 3500, 200 bales from Bahawalpur at Rs 3500, 400 bales from Fazilpur 3500, 600 bales from Burewala at Rs 3450-3500,400 bales from Mongi Banglow at Rs 3500, 400 bales from Rajanpur at Rs 3500, 200 bales from Dera Ghazi Khan at Rs 3500, 200 bales from Muridwala at Rs 3500, 200 bales from Chichawatni at Rs 3500, 400 bales from Vehari at Rs 3450-3500, 200 bales from Jampur at Rs 3475, 200 bales from Layyah at Rs 3450, 200 bales from Depalpur at Rs 3450 and 200 bales from Haroonabad at Rs 3450, 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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37.324 Kgs 3,475.00 100 3,575.00
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Equivalent
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40 Kgs 3,724.00 100 3,824.00
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