Declining trend prevailed on the cotton market on Friday as expectations for the phutti arrivals are rising, dealers said. The Karachi Cotton Association (KCA) official spot rate was cut down by Rs 300 to Rs 6,700, they said. In the ready business about 8000 bales of cotton changed hands between Rs 6200-7100, they said.
Seed cotton prices in Sindh were inching up at Rs 2300-2600 and in Punjab prices came down sharply, losing Rs 500-400 at Rs 2800-3100, they said. Some analysts said the prices may move both ways due to uncertainties about the reports of damage. News appeared that the recent floods caused great damage to agriculture sector, 80 percent of cotton was affected in southern Punjab while cotton areas were also affected in Sindh.
They said that floodwater is receding and sunny weather increasing the hopes that the picking operations may gain pace as ginners are interested in fresh buying. In the meantime, cotton traders are importing cotton from India to compensate floods damages or losses, they said.
The US Department of Agriculture (USDA) monthly supply-demand report for cotton was termed bullish by analysts on Thursday. On Thursday the NY cotton futures finished up and near a 3-1/2 month on all-around buying sparked by the bullish impetus from a report by the US agriculture department, brokers said.
ICE Futures US benchmark December cotton contract increased 2.65 cents to close at 83.55 cents per lb. It was the highest close for the second position cotton contract since April 30, according to Thomson Reuters data. December traded from 79.69 to 83.90 cents, the 3.00 cent limit up level for cotton. The last time the market rose the 3.00 cent limit was on April 20. Volume traded in the December contract reached a whopping 20,000 lots at 2:35 pm EDT (1835 GMT). Total volume traded at 2:35 pm was at 27,395 lots, up 81.6 percent over the 30-day average of 15,085 lots, preliminary Thomson Reuters data showed.
The following deals were reported: 1200 bales of cotton from Shahdad Pur sold at Rs 6300-6400, 400 bales from Tando Adam at Rs 6300-6400, 400 bales from Sultanabad at Rs 6200, 200 bales from Odero Lal at Rs 6350, 1000 bales from Sanghar at Rs 6300-6400, 200 bales from Daur at Rs 6325, 200 bales from Khipro at Rs 6200-6300, 200 bales from Khanewal at Rs 7100, 200 bales from Jhang at Rs 7000, 1000 bales from Vehari at Rs 6700-7000, 1400 bales from Burewala at Rs 6800-7000, 400 bales from Chichawatni at Rs 6800-7000, 200 bales from Ghazi Abad at Rs 6900, 200 bales from Kasoowal at Rs 6800, 200 bales from Lodhran at Rs 6800, 400 bales from Pak Pattan at Rs 6600-6800, 400 bales from Bahwal Nagar at Rs 6750, 400 bales from Cot Radha Kishan at Rs 6750.
===========================================================================
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 Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 12.08.2010
===========================================================================
37.324 Kgs 6,700 120 6,820 7,120 + 300
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 7,180 120 7,300 7,622 + 322
===========================================================================
Comments
Comments are closed.