Holiday mood prevailed on the cotton market on Friday as both buyers and sellers were on the sidelines due to shortage of transport, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,450, they said.
Prices of seedcotton of low type in Sindh were unchanged at Rs 2000-2400 and rates in Punjab were inert at Rs 2200-2600, they said. In ready dealings over 2000 bales of cotton changed hands between Rs 5,300-5,500, they added. Some brokers said that there were no big business in the absence of proper participation by the buyers and sellers. In the meantime, the ginners were a little bit shy to sell at the lower rates, despite knowing the fact about the increased Phutti arrivals, they said.
Other interesting thing is that the mills and spinners, who have already made massive purchasing of cotton, hope for the decline in the rates, when market opens after holidays, they added. On Thursday the NY cotton futures ended easier on investor sales although the market traded in a band as players waited for leads while keeping an eye on the protracted euro zone debt crisis, dealers said.
The key December cotton contract on ICE Futures US slipped 0.22 cent to finish at 98.12 cents per lb, moving from 97.30 to 99.44 cents. Total volume traded on Thursday hit over 20,700 lots, over one-third above the 30-day norm, preliminary Thomson Reuters data and ICE Futures US data showed. Last Friday, the December contract ended at $1.0437 in the highest settlement close for spot cotton in six weeks.
The following deals were reported: 1400 bales of cotton from Upper Sindh sold at Rs 5300-5400, 400 bales from Bahawal Pur at Rs 5400, 200 bales from Khanewal at Rs 5500, same figure from Rahim Yar Khan at the same rate and equal figure from Sadiqabad at the same rate.
===========================================================================
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 03.11.2011
===========================================================================
37.324 Kgs 5,450 130 5,580 5,580 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,841 130 5,971 5,971 NIL
===========================================================================
Comments
Comments are closed.