Persistent demand by mills and spinners, helped the rates to keep present levels on the cotton market on Thursday, dealers said. Official spot rate maintained overnight level at Rs 5,900, they said. Approximately, 24,000 bales of cotton changed hands between Rs 5700-6200, they said.
Prices of seedcotton (phutti) in Sindh low type retained overnight level at Rs 2650 while the best variety shed Rs 50 to 2850, in Punjab low type was down by Rs 50 to Rs 2600 and the good variety drifted lower by Rs 100 to Rs 2950, they said. According to the market sources, seedcotton prices came down due to steady arrivals and it is most likely that rates may show further weakness due to said reason in the coming days.
Commenting on the next direction of market, cotton analyst Naseem Usman said that phutti prices likely to move in narrow range because growers will try to sell at the reasonable rates. He further said that if growers hold back the phutti in order to fetch the high rates, in that case prices can go up sharply.
The mills were buying local cotton but one the hand they are importing the same product from India due to best quality because China is interested in purchasing of domestic yarn, he added. Furthermore, Australian Bureau of Statistics (ABS) said on Thursday that Australian cotton and canola production hit record highs in the 2011/12 crop year. Canola production was 3.4 million tonnes, up 44 percent from last year and the highest since the 1999/2000 season. This factor may bring down the cotton prices marginally, other brokers said.
According to the Reuters, US cotton futures rose more than 1 percent to a two-week high on Wednesday on gains in prices for other commodities, while strength of global demand and economic sentiment will likely start setting the market tone, traders said.
Cotton closed near its session high at 71.85 cents a lb, which marked the loftiest price since October 31. The most-active December cotton contract on ICE Futures US settled up 82 cents at 71.63 cents with volume almost 10 percent above its 250-day average, preliminary Reuters data showed.
Following deals reported: 1600 bales from Shahdad pur at Rs 5700/5900, 1000 bales from Tando Adam at Rs 5750/5900, 1200 bales from Sanghar at Rs 5750-5900, 1000 bales from Mir Pur Khas at Rs 5750-5900, 400 bales from Daur at Rs 5900, 400 bales from Bandhi at Rs 5900, 1000 bales from Nawab shah at Rs 5800-5900, 1400 bales from khair Pur at Rs 6000-6100, 1000 bales from Upper Sindh at Rs 6050-6150, 200 bales from Kamalia at Rs 5925, 400 bales from Mongi Bangla at Rs 5925, 400 bales from Chistian at Rs 6000, 1200 bales from Bahawal nagar at Rs 6000, 600 bales from Chichawatni at Rs 6000, 1000 bales from Hasil Pur at Rs 6000-6075, 1200 bales from Bahawal Pur at Rs 6000-6100, 1000 bales from Shujabad at Rs 6000-6100, 400 bales from Vehari at Rs 6025, 2600 bales from Haroonabad at Rs 6050-6100, 400 bales from Ghazi ghat at Rs 6050, 3000 Mian wali at Rs 6100/6200, 400 Ahmed Pur at Rs 6200, 400 Khan bela at Rs 6100, 400 bales from Jam Pur at Rs 6100, 400 bales from Fort Abbas at Rs 6100, 400 bales from Burewala at Rs 6100, 400 bales from Uch Sharif at Rs 6100, 800 bales from Khanewal at Rs 6100, 400 bales from Faqir wali at Rs 6150, 400 bales from Fazil Pur at Rs 6150, 200 bales from Yazman Mandi at Rs 6150, 400 bales from Rajan Pur at Rs 6200, they said.
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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 14.11.2012
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37.324 Kgs 5,900 155 6,055 6,055 NIL
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Equivalent
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40 Kgs 6,323 155 6,478 6,478 NIL
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