Prices, though stable, showed mixed pattern on active demand on the cotton market on Monday despite the persisting rise in the NY cotton futures, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 6,400, they said. In the ready business, nearly 9,000 bales of cotton changed between Rs 6450-6625, they said.
Seed cotton prices in Sindh were at Rs 2950-3000 and in Punjab prices did not show any change at the weekend levels at Rs 2800-3000, they said. Market sources said that prices were soft as sellers were trying to sell old stock ahead of holidays. In the meantime, it is likely that rates may not come down of fine quality, they said.
Some brokers said that cotton prices may go up under the influence of the New York cotton future. The New York cotton futures hit a 2-year high last week. Cotton was the best performing commodity in August, rising 9.45 percent in value in its biggest monthly gain since February.
According to a report, "globally, demand is very strong. We are getting good orders from Pakistan and China. There is demand for 10 million Indian bales", an Indian cotton broker Valia said. Indian exporters have been demanding a free hand for exports as floods ravaged crops in neighbouring Pakistan and also affected crops in China, raising demand for the Indian fibre. About 60 percent of India's current season cotton shipments have gone to China, the biggest consumer.
Trade officials expect Pakistan to import about three million bales of cotton this year, against average annual imports of 1.5 million to 2 million bales.
Global cotton prices could jump 15 percent in 2010/11 as demand recovers and world stocks remain tight, an international farm group said on Wednesday.
The following deals were reported: 200 bales of cotton from Shah Pur Chakar sold at Rs 6500, 200 bales from Kazi Ahmed at Rs 6500, 2000 bales from Shahdad Pur at Rs 6550-6600, 1600 bales from Tando Adam at Rs 6550-6600, 1000 bales from Sanghar at Rs 6500-6550, 400 bales from Khipro at Rs 6500-6550, 400 bales from Hyderabad at Rs 6550, 400 bales from Mir Pur Khas at Rs 6550, 200 bales from Chistian at Rs 6450, 200 bales from Pir Mahal at Rs 6450, 200 bales from Mongi Banglaw at Rs 6500, 1000 bales from Burewala at Rs 6500-6625, 400 bales from Hasil Pur at Rs 6500-6550, 200 bales from Bahawal Nagar at Rs 6575 and 200 bales from Khanewal at Rs 6600, dealers 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 04.09.2010
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37.324 Kgs 6,400 120 6,520 6,420 +100
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Equivalent
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40 Kgs 6,852 120 6,979 6,872 +107
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