Slow daily-intake was again witnessed on cotton market on Friday because mills and spinners remained on the sidelines in the absence of motivating factors, dealers said. The official spot rate resisted further decline, retaining at overnight rate Rs 5,300, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab Rs 2200-2650, they said.
In ready dealings around 6000 bales of cotton changed hands at Rs 3600-5700, they added. Some brokers said that dullness persisted on the cotton market in the absence of fresh demand even at the lower prices. Naseem Usman said that traders are looking worried over the persisting lacklustre condition.
Other analysts were of the view that loss in cotton business, is propelling traders related to the cotton to shift their position towards other commodities, which are profitable despite the world recession. Most of the cotton producing states, are cutting down area under cotton cultivation, such as India, because reports coming up that India may cut down the cotton cultivation in the coming days due to less profitable business.
Other experts said that rice, pulses and grams rates were going up due to several reasons. Less production of pulses and grams locally and on the other hand, hovering fears of Iran war, pushing the prices higher, they said. It is also expected that many traders of the world may take interest in soya cultivation due to upward trend in the rates the world-wide, they added.
Other cotton traders said that globally cotton lower prices may prompt farmers and ginners to shift to other crops such as canola and barley. 'We are doubtful about the recovery in the cotton prices in short-term', they said. According to the Reuters, the NY cotton futures settled lower as it declined for the second straight session as technically inspired investor sales kept the market on the defensive, analysts said. Benchmark May cotton on ICE Futures US dropped 0.77 cent to conclude at 89.67 cents per lb, trading from 89.46 to 91.49 cents. Volume traded on Thursday was around 17,100 lots, about 30 percent below the 30-day average, preliminary Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 4200, 400 bales of cotton from Khair Pur at Rs 5100, 400 bales of cotton from Saleh Pat at Rs 5400, 400 bales of cotton from Mando Dero at Rs 5450, 400 bales of cotton from Mian Chano (Low Quality) at Rs 3600, 400 bales of cotton from Chichawatni (Low Quality) at Rs 3600, 200 bales of cotton from Sahiwal at Rs 5000, 400 bales of cotton from Hasil Pur at Rs 5150, 200 bales of cotton from Mailsi at Rs 5300, 400 bales of cotton from Bahawal Pur at Rs 5350, 400 bales of cotton from Vehari at Rs 5400, 200 bales of cotton from Kabir Wala at Rs 5400, 400 bales of cotton from Muhammad Pur at Rs 5600, 400 bales of cotton from Lodhran at Rs 5700, 400 bales of cotton from Mian Wali at Rs 5700.
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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 01.03.2012
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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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