Anticipation of rise in prices, propelled mills to keep buying to run their business in the absence market moving factor, dealers said on the cotton market on Thursday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,300, they said. Prices of seed-cotton in Sindh were at Rs 1800-2300 and in Punjab at Rs 2000-2600, they said.
In ready dealings prices fell by Rs 100 as above 27,000 bales of cotton changed hands at Rs 3,700-5,400, they added. Market sources said that national currency's depreciation versus dollar was also a factor, which kept the buyers on toe as they could not avoid buying, because in case of a weaker rupee, the rates would be pushed up. On the other hand, they said that declining trend in the NY cotton futures is now allowing the ginners to wait for the sharp recovery in the prices.
According a survey by the China Cotton Association (CCA), in China cotton production may come down due to unfavourable weather condition in the coming days. Besides, the Cotton Corporation of India (CCI) places seed cotton arrivals from the 2011-12 crop by November 27 at the equivalent of 4,310,000 bales (170 kilos) of lint, which is 25 percent less than a year earlier.
On Wednesday the NY cotton futures settled easier on investor sales as the long-running economic crisis took its toll on fiber demand as cotton contracts lost almost 10 percent of its value in the month of November, analysts said. The key March cotton futures fell 1.84 cents or by almost two percent to finish at 90.91 cents per lb, trading from 90.70 to 93.67 cents. Total volume traded on Wednesday was over 14,700 lots, nearly 40 percent below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 600 bales of cotton from Sultanabad sold at Rs 3700, 200 bales of cotton from Mir Pur Khas at Rs 3800, 2400 bales of cotton from Mir Pur Khas at Rs 4200, 400 from Nawabshah at Rs 4375, 2000 bales of cotton from Upper Sindh at Rs 5225/5300, 1600 bales of cotton from Khair Pur at Rs 4700/4800, 400 bales of cotton from Chistian at Rs 5100, 200 bales of cotton from Jahanian at Rs 5100, 2000 bales of cotton from Haroonabad at Rs 5100/5150, 200 bales of cotton from Marot at Rs 5175, 800 bales of cotton from Chichawatni at Rs 5200, 1400 bales of cotton from Vehari at Rs 5200, 600 bales of cotton from Kabir Wala at Rs 5200, 400 bales of cotton from Hasil Pur at Rs 5200, 400 bales of cotton from Fort Abbas at Rs 5200, 800 bales of cotton from Burewala at Rs 5200, 400 bales of cotton from Lodhran at Rs 5250/5300, 400 bales of cotton from Qabola at Rs 5300, 2000 bales from Khanewal at Rs 5300, 1600 bales of cotton from Rahim Yar Khan at Rs 5300, 1000 bales of cotton from Liaquat Pur at Rs 5300, 1600 bales of cotton from Ahmed Pur at Rs 5300, 400 bales of cotton from Jam Pur at Rs 5300, 1000 bales of cotton from Ahmed Pur at Rs 5300, 2000 bales of cotton from Bahawal Pur at Rs 5300, 400 bales of cotton from Layyah at Rs 5325, 800 bales of cotton from Ali Pur at Rs 5350, 400 bales of cotton from Ghazi Ghat at Rs 5400, 400 bales of cotton from Rajan Pur at Rs 5400 and 200 bales of cotton from Mianwali at Rs 5400.
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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 30.11.2011
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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