Rates went up sharply on the cotton market on Saturday during the hectic buying by mills and exporters, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 150 to Rs 7150, they said. In the ready business nearly 25,000 bales of cotton changed hands between Rs 7200-7350, they said.
Seed cotton prices in Sindh were unchanged at Rs 3200-3250, in Punjab prices were at Rs 3000-3200 on persisting demand by the, they added. Some analysts said that prices showed sharp rise due to persisting demand by exporters and mills to meet the foreign and local requirements. Buying interest among mills and exporters followed by China's thirst to meet the local consumption.
Locally, it is expected that the country may not achieve the target for the current season due to floods, they said adding that on the other hand, very hot and warm weather may bring down the figure slightly. Besides, non-availability of irrigation water could be another factor behind the fall of production, they added.
On Friday the NY cotton futures settled at its highest level in 15 years on investment fund and Chinese mill buying combined with a bullish US government crop report. Values may push past the all-time record in the days ahead, analysts said.
Cotton surged before the US Agriculture Department (USDA) published its much anticipated monthly supply-demand report earlier Friday, but the market took off after the USDA's cotton figures came out. ICE Futures US benchmark December cotton contract climbed the 4.00-cents limit to trade at $1.0775 per lb, the highest level in 15-years.
The following deals were reported: 3000 bales of cotton from Shahdadpur sold at Rs 7200-7300, 2000 bales from Tando Adam at Rs 7250-7300, 3000 bales from Mirpurkhas at Rs 7250-7300, 1200 bales from Sultanabad at Rs 7300, 1800 bales from Sanghar at Rs 7200-7250, 600 bales of cotton from Hyderabad at Rs 7250-7300, 2000 bales from Nawabshah at Rs 7250-7300, 200 bales from Khipro at Rs 7250, 2200 bales from Khair Pur at Rs 7250-7300, 3000 bales from Upper Sindh at Rs 7300-7350, 400 bales from Gaggo Mandi at Rs 7200, 600 bales from Arif Wala at Rs 7200-7250, 600 bales from Kabirwala at Rs 7200, 1000 bales from Rajan Pur at Rs 7200, 800 bales from Khanewal at Rs 7200, 400 bales from Chichawatni at Rs 7200, 200 bales from Bahawal Pur at Rs 7200, 600 bales from Burewala at Rs 7200-7250, 400 bales from Mailsi at Rs 7200, 200 bales from Yazaman Mandi at Rs 7200, 400 bales from Layyah at Rs 7200 and 600 bales from Garh Mahraja at Rs 7200.
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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 08.10.2010
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37.324 Kgs 7,150 120 7,270 7,120 +150
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Equivalent
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40 Kgs 7,663 120 7,783 7,622 +161
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