Downward trend witnessed on cotton market on Thursday as the ginners unnerved after the Cotton Crop Assessment Committee (CCAC) report, which indicating a rise in total production against the last year, dealers said. Official spot rate was unchanged at Rs 5,900, they said. Above, 22000 bales of cotton finalised between Rs 5300 and Rs 6000, they said.
Prices of seedcotton (phutti) in Sindh were unchanged at Rs 2400-2650, in Punjab, rates were also unchanged at Rs 2600-2750, they said. Some brokers said that cotton prices may not retain their present levels due to increase in production for the current season. It is difficult not very difficult to predict about the next direction of the market, they added.
The ginners, who have already unsold stock, are in grip of unforeseen uncertainties because local mills were importing finer type from other countries at the local prices, on the other hand, the ginners, who have spent their hard earnings on production due to shortage of gas and power, higher cost of production is causing a big problem for them, some ginners said. The cotton analyst, Naseem Usman said that it appeared that the rates may come down but with gradual pace in the coming days According to the Reuters, the US cotton futures were slightly higher on Wednesday, trading in a narrower range as volumes dropped and investors became more nervous as the US harvest nears its end and uncertainty over the US budget talks heighten.
Prices, which have been stuck between 70 and 74 cents per lb for the past six weeks, seesawed on either side of 73 cents on Wednesday. The most-active March contract on ICE Futures US settled up 0.13 cent, or 0.18 percent, at 73.04 cents per lb, with trading in a narrow range of 0.83 cent.
Just under 9,500 lots of March contracts changed hands on Wednesday, well below recent averages. At the same time, Chinese mills that were previously buying below 70 cents are now closer to 72 cents, they said. The December contract which expires on Thursday, eased 0.13 cent to 72.04 cents per lb, with just 248 lots of open interest left and just 12 lots traded on the day.
The following deals were reported: 1000 bales of cotton from Shahdadpur at Rs 5300-5600, 400 bales from Jhole at Rs 5600, 400 bales from Kotri at Rs 5600, 5000 bales from Khairpur at Rs 5900, 1200 bales from Bahawalpur at Rs 5850/5900, 1600 bales from Haroonabad at Rs 5850/5900, 1800 bales from Faqirwali at Rs 5850/5900, 400 bales from Hasilpur at Rs 5875, 1400 bales from Vehari at Rs 5875/5950, 600 bales from Maroot at Rs 5900, 400 bales from Lodhran at Rs 5900, 400 bales from Tonsa Sharif at Rs 5900, 600 bales from Dera Ghazi Khan at Rs 5900, 1000 bales from Noorpur at Rs 5925, 3000 bales from Rahim Yar Khan at Rs 5950, 1000 bales from Sadiqabad at Rs 5950, 1000 bales from Khanpur at Rs 6000, 200 bales from Layyah at Rs 6000 and 400 bales from Rajanpur at Rs 6000, 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 04.12.2012
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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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