It is surprising that after the Indian export news, the official spot rate rise was maintained on the cotton market on Wednesday, dealers said. The Karachi Cotton Association (KCA) spot rate was raised by Rs 200 to Rs 9,500. Seed cotton prices in Sindh and Punjab fell by Rs 100 to Rs 4,000-4,300, they said.
In ready business, nearly 25,000 bales of cotton changed hand between Rs 9300-10,000, they added. Market sources said that after the fall in the New York market, prices failed to maintain surge and it is expected that buyers may be on the sidelined to see price fluctuations after the Indian factor.
According to a report, cotton prices in India jumped on Wednesday as exporters bought aggressively after the government announcement in, which it said that it will still allow exports of 2.5 million bales despite expiry of a December 15 deadline, exporters said.
Some experts said that not only in Pakistan, in China and Bangladesh, Indian cotton is also very much in demand because the same stuff is much cheaper than Chinese or US cotton. So, they said that exporters are expecting that Chinese buyers will pay higher prices to secure supplies.
Besides, Reuters adds: the US cotton futures fell more than three percent on Wednesday as the market took a breather after climbing to an all-time high in the last session on speculative buying and tight supplies, while China's cotton market lost more that two percent. Furthermore, India will decide whether to raise its export limit for cotton above 5.5 million bales for 2010/11 in mid-January, Trade Secretary Rahul Khullar said on Wednesday, and registration for current export quotas will reopen next week.
On Tuesday trading in the cotton options market was halted for a second straight day after cotton options rose by twice the daily limit, ICE Futures US said. "Trading of the options contracts is halted based upon a determination by the exchange that the lead month futures contract is trading at a synthetic price that is equal to two times the daily price limit," the exchange said in a statement. The benchmark March cotton futures were trading up by the 5.00-cent daily limit at a record $1.5912 per lb. The option cotton contract traded at $1.6412, up 10 cents.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 9400, 1600 bales from Nawabshah at Rs 9500, 1200 bales from ShahdadPur at Rs 9400-9500, 600 bales of cotton from Tando Adam at Rs 9500, 3000 bales from Khair Pur at Rs 9600-10000 (Conditional), 2000 bales from Upper Sindh at Rs 10000 (Conditional), 600 bales from Faqirwali at Rs 9300, 200 bales from Lodhran at Rs 9300, 400 bales from Chistian at Rs 9300, 400 bales of cotton from Darran Wala at Rs 9300, 200 bales from Hasil Pur sold at Rs 9300, 1600 bales from Haroonabad at Rs 9500, 400 bales from Gaggo Mandi at Rs 9500, 1000 bales from Gojra at Rs 9500, 1000 bales from Muridwala at Rs 9500, 400 bales from Chichawatni at Rs 9500, 600 bales from Mian Channo at Rs 9500-9600, 400 bales from Rahim Var Khan at Rs 9600-9800, 800 bales from Liaquat Pur at Rs 9600-9700, 200 bales from Sahiwal at Rs 9600, 200 bales from Kassowal at Rs 9600, 600 bales from Gelaywal at Rs 9600-9700, 1000 bales from RajanPur at Rs 9700-10000, 800 bales from Muhammad Pur at Rs 9800, 200 bales from Ali Pur at Rs 9800, 400 bales from Mianwali at Rs 9800-10000, 600 bales from Kabirwala at Rs 9800-10000 600 bales from Sadiqabad at Rs 9800 600 bales from Dera Ghazi Khanat Rs 9800 and 200 bales of cotton from Bahawana at Rs 10000.
===========================================================================
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 21.12.2010
===========================================================================
37.324 Kgs 9,500 120 9,620 9,420 +200
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 10,181 120 10,301 10,087 +214
===========================================================================
Comments
Comments are closed.