Rates hit the new high on the cotton market on Thursday as mills did purchasing amid confusions over the contracts of import of Indian cotton, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 11000, they said. Phutti prices in Sindh and Punjab were unchanged at Rs 4300-5500, they said. In the ready business, trading activity improved as about 13,000 bales of cotton changed hand between Rs 10,400-12500 (credit), they said.
Market sources said that no respite was seen in the price increase because the NY cotton futures is still on surge and rates in the local market also hit the new high at Rs 12500. Commenting on the higher trend in the prices, Naseem Usman said that the price may show further rise in the coming days as it is not clear that what is next Indian move? In the meantime, negotiations between India and Pakistan may help in making any progress to import cotton , he said.
Besides, Pakistan Cotton Ginners Association (PCGA) fortnightly report issued, showing phutti arrival till January 31 was nearly 11.1 million bales, depicting sharp fall against the last year figure at 12.5 million bales, brokers said. According to a report, India has asked traders to apply for cotton yarn exports for unshipped quantities out of the 720 million kg allowed in the 2010/11 season, a government circular said late on Tuesday.
Exporters must apply between February 2 and February 7, the circular said, and after getting permission have to export the quantity by March 31. On Wednesday the US cotton futures jumped for the third straight day, settling up the daily limit, as Asian mills fuelled the rally on average volume.
Cotton futures have rallied almost 25 percent since the middle of January, the latest wave of a historic run that began in 2010 and sent cotton prices to their loftiest levels in almost 150 years. The key March cotton contract on ICE Futures US rose the four cent limit to conclude at $1.7622 per lb, with the session low at $1.73. Total volume stood around 20,400 lots, just above the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 500 bales of cotton from Rahim Yar Khan sold at Rs 12000, 600 bales from Upper Sindh at Rs 12200, 500 bales from Ghariki and Ghotki at Rs 12500, 400 bales of cotton from Noabad at Rs 10800, 400 bales of cotton from Khadro at Rs 10800, 400 bales from Mehrab Pur at 10900, 800 bales from Kumb at Rs 10900, 1000 bales of cotton from Upper Sindh at Rs 11500, 600 bales of cotton from Faqir wali at Rs 10400, 1200 bales of cotton from Haroonabad 10400-10900, 800 bales of cotton from Vehari at Rs 10725, 200 bales of cotton from Multan at Rs 10500/11000, 800 bales of cotton from Bahawal Pur at Rs 10800/11000, 800 bales of cotton from Pul Baghar at Rs 10800, 400 bales of cotton from Duniya pur at Rs 11200, 400 bales of cotton from Khan Pur at Rs 11500, 800 bales of cotton from Rahim Yar Khan at Rs 11500, 600 bales of cotton from Lodhran at Rs 11500, 1400 bales of cotton from Liaquat Pur at Rs 11500 and 400 bales of cotton from Tounsa Sharif at Rs 11500.
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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 02.02.2011
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37.324 Kgs 11,000 120 11,120 10,120 NIL
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Equivalent
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40 Kgs 11,789 120 11,909 11,909 NIL
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