Activity picked up on the cotton market on Thursday as the ginners did not show any resistance in selling despite the fall in the rates daily on steady supply position, dealers said. The Karachi Cotton Association (KCA) official spot was lowered further by Rs 300 to Rs 6,800, thus, since the week, started rates lost Rs 1000, they said.
Seedcotton rates stabilised in Sindh at Rs 2800-2900, in Punjab resisted further decline at Rs 2500-2900, they said. In ready business trading activity improved as around 12,000 bales of cotton changed hands at Rs 6500-7000, they said. Market sources said that the ginners got panicked after news of good supply of phutti despite the rains in the cotton belt. Other brokers said that they expect prices decline may halt after rains in Sindh cotton belt as a result of no interruption in the phutti arrivals at the ginneries, they said.
Lack of purchasing of cotton yarn and cloth also caused continued decline in the rates and under the circumstances no body is able to predict the positive development, though, it looks that price may fall in the near future, they said. On Wednesday the US cotton futures finished lower on as the market fell for the fifth session in a row as soft commercial demand and a rate increase in top consumer China undermined the market and could point to further losses in fiber contracts, brokers said.
The key December cotton futures on ICE Futures US dropped 2.10 cents to settle at $1.1342 per lb, dealing from $1.126 to $1.1773. For the third position contract, it was the lowest finish since November. 30. Volume traded stood at 10,600 lots at 2:55 pm EDT (1855 GMT), almost 50 percent below the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Hyderabad sold at Rs 6800-6900, 400 bales from Shahdad Pur at Rs 6800-6900, 5600 bales from Shahdad Pur at Rs 6500 (delivery 18th July), 400 bales from Matiyari at Rs 6800-6950, 100 bales from Nooriabad sold at Rs 6950, 200 bales from Golarchi at Rs 6800, 400 bales from Mian Channu at Rs 6800-7000, 600 bales from Burewala sold at Rs 6700-7000, 600 bales from Chichawatni at Rs 6700-7000, 400 bales from Pak Pattan at Rs 6700-6800, 200 bales from Tata Pur at Rs 6800, 200 bales from Multan at Rs 7000, 800 bales from Haroonabad at Rs 6500-7000, 200 bales from Mongi Bangla at Rs 7000, 600 bales from Chistian at Rs 6500-6800 and 600 bales from Sahiwal at Rs 6500-6800.
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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 06.07.2011
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37.324 Kgs 6,800 120 7,220 6,920 - 300
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Equivalent
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40 Kgs 7,228 120 7,729 7,408 - 321
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