Panic buying was witnessed on cotton market on Wednesday as mills and exporters did not wait for decline in the rates in anticipation of shortage of stock in the coming days and some jitters over the outcome of the meeting of textile stakeholders with the textile minister, dealers said.
The official spot rate was spared from further rise, holding the overnight rate at Rs 3725, brokers said. In the ready business, prices were firm as nearly 50,000 bales of cotton changed hands between Rs 3700-3800. Phutti prices were also steady in Sindh and the Punjab at Rs 1800-1900, they added.
Market sources said that the prices were firm as buyers grabbed all lots, offered by the ginners. Both buyers and sellers were confused about the outcome of the today's meeting of textile stakeholders with the federal minister, so both came on meeting point, which raised the volume of business, they said.
The problems related to the textile sector after sharp increase in the rates came under discussion and it is likely that the trading activity may come down in the coming days, they said. On Tuesday the NY cotton futures settled softer on investors sales caused mainly by weak outside markets and the move of the dollar to a two-week top, brokers said.
The December cotton contract fell 0.36 cent to end at 67.05 cents per lb, dealing from 66.10 to 67.55 cents. December contract volume reached 9,699 lots at 2:33 pm EDT (1833 GMT). March cotton eased 0.25 cent to settle at 69.76 cents, trading between 68.80 and 70.04 cents.
THE FOLLOWING DEALS WERE REPORTED: 2000 bales of cotton from Shahdad Pur sold at Rs 3725-3750, 1600 bales from Tando Adam at Rs 3725-3750, 1200 bales from Sanghar at Rs 3700-3725, 1000 bales from NawabsShah at Rs 3725, 1600 bales from Mir Pur Khas at Rs 3715-3735, 2600 bales from Jhole at Rs 3725-3750, 1000 bales from Khair Pur at Rs 3750, 1200 bales from upper Sindh at Rs 3800, 400 bales from Murid Wala at Rs 3800, 5000 bales from Rahim Yar Khan at Rs 3800, 1000 bales from Saddiqueabad at Rs 3800, 3900 bales from Rajan Pur at Rs 3800, 2000 bales from Khan Pur at Rs 3800, 3000 bales from Bahawal Pur at Rs 3750-3775, 1000 bales from Liaqat Pur at Rs 3800, 6000 bales from Haroonabad at Rs 3775-3800, 2000 bales from Ahmad Pur at Rs 3800, 2800 bales from Burewala at Rs 3750-3775, 800 bales from Chichawatni at Rs 3750-3775, 2000 bales from Khanewal 3750-3775, 1000 bales from Arifwala at Rs 3750-3775 and 2000 bales from Mian Chanu at Rs 3750-3775.
===========================================================
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%
===========================================================
37.324 Kgs 3,725.00 100 3,825.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3,992.00 100 4,092.00
===========================================================
Comments
Comments are closed.