Trading activity improved on the cotton market on Saturday as increase in phutti arrivals forced the ginners to lower prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6000, they said. The prices of seedcotton in Sindh were lower by Rs 200-100 to Rs 2300-2500 and rates in Punjab also came down at Rs 2200-2500, they said.
Approximately 9,000 bales of cotton changed hands between Rs 5,600-6050, dealers added. According to the market sources, pace of phutti arrivals is rising and during Eid holidays, the stock unsold will pile up so the ginners were lowering the rates of cotton to avoid future losses.
In the meantime rains continue in the Punjab and it is expected that rains may affect quality of cotton, some analysts said. Commenting on the falling trend in the rates, they said that rise in phutti arrivals, may cause further decline in prices and cotton market may be under pressure in the near future if rates come down in the international market.
On Friday the NY cotton futures settled higher on investor buying to end a three-day losing streak as firmer outside markets gave fiber contracts a lift, analysts said.
World stocks surged and the dollar fell after Federal Reserve chairman Ben Bernanke left the door open for future US economic stimulus. The key December cotton contract on ICE Futures US rose 1.33 cents to close at $1.0432 per lb, moving from $1.0215 to $1.0488. It was an inside day since the range was within Thursday's $1.0174 to $1.0639 band. For the week, the market lost 1.79 percent. Total volume traded hit over 7,700 lots, more than 40 percent below the 30-day norm, Reuters data said. Traders said the December contract seems pinned in a band running from $1 to around $1.0416, the area of support it broke down from this week.
The following deals were reported: 600 bales of cotton from Mir Pur Khas sold at Rs 5600, 200 bales of cotton from Hala at Rs 5600, 400 bales of cotton from Tando Adam at Rs 5650, 200 bales of cotton from Sanghar at Rs 5700, 200 bales of cotton from Matiyari at Rs 5700, 200 bales of cotton from Hyderabad at Rs 5700, 400 bales of cotton from Sanghar at Rs 5700, 1000 bales of cotton from Sadiqabad at Rs 5800-5700, 600 bales of cotton from Chichawatni at Rs 6000-6050, 200 bales of cotton from Khanewal at Rs 6000, 600 bales of cotton from Vehari at Rs 5900-5925, 400 bales of cotton from Sahiwal at Rs 5900, 200 bales of cotton from Arifwala at Rs 5900, 600 bales of cotton from Murid wala at Rs 5900, 200 bales of cotton from Mongi bangla at Rs 5900, 200 bales of cotton from Garh Maharaja at Rs 5900, 400 bales of cotton from Multan at Rs 5900, 400 bales of cotton from Burewala at Rs 5900, 200 bales of cotton from Gajjo Mandi at Rs 5900, 200 bales of cotton from Pir Mahal at Rs 5900, 200 bales of cotton from Gojra at Rs 5900, 200 bales of cotton from Chiniot at Rs 5875 and 200 bales of cotton from Sillan wali at Rs 5650.
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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 22.08.2011
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37.324 Kgs 6,000 120 6,130 6,130 NIL
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Equivalent
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40 Kgs 6,430 120 6,560 6,560 NIL
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