Panic buying of cotton and high rise in the rates were seen on the cotton market on Wednesday as India has extended date for registration for cotton exports, dealers said. The Karachi Cotton Association (KCA) official spot rate was maintained its upward move for the second day in a row, picking up Rs 150 to Rs 6,700, they said.
In the ready business prices looked ahead as approximately 15000 bales of cotton changed hands between Rs 6600-6850, they said. Seed cotton prices in Sindh were at Rs 3050-3150 and in Punjab prices were higher by Rs 100 to Rs 3000-3200, they added.
According to reports India has postponed registration of cotton for export in the 2010/11 season by a fortnight to October 1, after the textile industry raised concerns over rising local prices, two government officials told Reuters. "Yes, it has been postponed until October 1," an official at the Textile Commissioner's office, who declined to be named, said.
The registration was slated to begin from September 15, but another official familiar with the development said it will not begin then. Soaring prices in the New York cotton futures, in fact caused increase in the rates, other brokers said, adding now it looks that the rates may go up more in the coming day. On Tuesday the NY cotton futures ended at a new 15-year high due to steady investment fund and possible mill buying, with some analysts saying the momentum could lift values close to the psychological $1/lb mark. ICE Futures US key December cotton contract rose 1.79 cents, or 1.93 percent, to close at 94.50 cents per lb. It was the highest close for the benchmark second position cotton contract since 1995, the only time cotton futures have traded over $1 since 1960. December traded between 92.80 and 94.85 cents. Total cotton volume traded was 17,702 lots at 2:50 pm EDT (1850 GMT), 24.43 percent above the 30-day average at 14,227 lots, preliminary Thomson Reuters data showed.
The following deals were reported: 2600 bales of cotton from Tando Adam sold at Rs 6700-6850, 600 bales from same station atRs 7000, 2400 bales from Shadad Pur at Rs 6700-6850, 800 bales from Hyderabad at Rs 6700-6800, 2000 bales from Khair Pur at Rs 6750-6800, 1000 bales from Sanghar at Rs 6700-6750, 200 bales from Lodhran at Rs 6800, 400 bales from Bahawal Nagar at Rs 6725-6750, 800 bales from Chistian at Rs 6700-6800, 1200 bales from Burewala at Rs 6600-6800, 800 bales from Mian Channu at Rs 6700-6800, 400 bales from Vehari at Rs 6700, 400 bales from Pul Bagar at Rs 6700, 800 bales from Chichawatni at Rs 6800, 200 bales from Khanewal at Rs 6750, 200 bales from Muridwala at Rs 6750, 200 bales from Tonsa Sharif at Rs 6800, 400 bales from Hasil Pur at Rs 6800 and 200 bales from Arifwala 6800.
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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 14.09.2010
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37.324 Kgs 6,700 120 6,820 6,670 +150
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Equivalent
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40 Kgs 7,180 120 7,300 7,140 +161
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