Prices maintained surge on the cotton market on Wednesday despite the expectations for bumper production during the current season, dealers said. The official spot rate was raised further by Rs 50 to Rs 3825, brokers said. In the ready business approximately 42,000 bales of cotton changed hands between Rs 3775-4000.
Phutti prices were also sharply higher in Sindh and the Punjab at Rs 1950-2000, they added. The cotton prices went up sharply as mills and exporters both were active to cover the forward buying mainly because of quality factor, analysts said. Commenting on the spike in cotton prices, they said that the price increase on the daily basis is a fun because the fact is that till now it appeared that production is good and the cotton circle is expecting bumper crop this year.
It looks that the speculators are active and trying to create shortage of quality cotton just to earn money, they said. According to some observers if the pace of phutti arrivals continues, it could be expected that the country may get a record cotton output of around 17 million bales this season. In the meantime the surge in the prices is not supporting the theory of bumper cotton crop, which means, the prices may come down in the coming days, they said.
Record inflow of phutti at ginneries is giving hope of harvesting a bumper cotton crop but it would be too early to predict the exact output figure of cotton, they said. It is believed that the sporadic cultivation of Bt cotton in both Sindh and the Punjab is basic factor behind the bumper crop, they said. More surprising thing was that despite the downward trend in the NY cotton market, the prices were moving upwards, they said. On Tuesday the NY cotton futures settled slightly lower on investor sales as the trade mulled whether a further advance in fibre contracts in the weeks ahead was feasible or not, brokers said. The December cotton contract slipped 0.19 cent to settle at 67.45 cents per lb, trading from 66.80 to 68.31 cents. December contract volume reached 9,670 lots at 2:38 pm EST (1938 GMT). March cotton shed 0.27 cent to close at 70.82 cents, trading between 70.32 and 71.68 cents.
The following deals were reported: 2000 bales of cotton from Rahimyar Khan sold at Rs 4000, 3000 bales of cotton from Shahdadpur sold at Rs 3775-3800, 2000 bales from Tando Adam at Rs 3775-3800, 800 bales from Sakrand at Rs 3775-3825, 2000 bales from Mirpurkhas at Rs 3775-3800, 400 bales from Kazi Ahmed at Rs 3775, 800 bales from Nawabshah at Rs 3775-3800, 2000 bales from Khair Pur at Rs 3850, 4000 bales from upper Sindh at Rs 3900, 5000 bales from Rahim Yar Khan at Rs 3850-3900, 2000 bales from Rajan Pur at Rs 3850-3900, 2000 bales from Fazilpur at Rs 3850-3900, 4000 bales from Sadiqabad at Rs 3850-3900, 2000 bales from Burewala at Rs 3825-3850,400 bales from Samandari at Rs 3850, 1000 bales from Bahawal Pur at Rs 3825, 1000 bales from Ahmed Pur East at Rs 3825, 400 bales from Chichawatni at Rs 3850, 400 bales from Bahawal Nagar at Rs 3800, 1000 bales from Bhakkar at Rs 3800-3850, 1000 bales from Layyah at Rs 3800-3850 and 400 bales from Sahiwal at Rs 3850.
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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 3,825.00 100 3,925.00
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Equivalent
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40 Kgs 4,099.00 100 4,199.00
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