Downfall proved short-lived as prices went up on the cotton market on Tuesday amid shrinking business activity, dealers said. The official spot rate moved up modestly, gaining Rs 25 to Rs 3725, brokers said. In the ready business rates improved modestly and activity was thin as nearly 15,000 bales of cotton changed hands between Rs 3700-3800.
Phutti prices also rose by Rs 50 in Sindh and the Punjab to Rs 1800-1900, they added. Leading analysts said that all the eyes were set on the textile ministry's emergency meeting with all the stakeholders of the textile industry to resolve the problem created after sharp rise in the yarn and cotton prices. The export of cotton yarn is also hitting the exports of value-added products, they said.
The meeting will be held on Wednesday and expectations are rising that outcome from the discussion may yield some solution, they said. The main concern was that due to ever increasing cotton yarn prices have forced many power-loom factories to close and rendered many jobless. The country is already facing very serious problems due to recession the world over. Now the rising exports of yarn and cotton were adding concern for the concerned people, they said.
On Monday, the NY cotton futures settled higher on Monday as the market gyrated in a band, with players watching the movement of the dollar to determine the next move of the market, brokers said. The December cotton contract rose 0.03 cent to end at 67.41 cents per lb, dealing from 66.66 to 68.59 cents. December contract volume reached 10,209 lots at 2:45 pm EDT (1845 GMT). March cotton added 0.14 cent to settle at 70.01 cents, trading between 69.24 and 71.07 cents.
THE FOLLOWING DEALS WERE REPORTED: 2500 bales of cotton from Mirpurkhas sold at Rs 3700, 3000 bales from Shahdadpur at Rs 3700-3725, 2000 bales from Tando Adam at Rs 3700-3725, 1600 bales from Sanghar at Rs 3700-3725, 1000 bales from Nawabshah at Rs 3700-3725, 2000 bales from upper Sindh at Rs 3800, 400 bales from Rahimyar Khan at Rs 3800, 200 bales from Rajan Pur at Rs 3800, 400 bales from Sadiqabad at Rs 3800, 400 bales from Dera Gazi Khan at Rs 3800, 1000 bales from Khanewal at Rs 3800, 400 bales from Lodhran at Rs 3800 and 400 bales from Chichawatni at Rs 3800.
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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 3,725.00 100 3,825.00
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Equivalent
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40 Kgs 3,992.00 100 4,092.00
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