Trading activity improved on the cotton market on Thursday as a result of continued rise in prices, dealers said. The official spot rate was up by Rs 50 to Rs 6,450, dealers said. Seed cotton prices in Sindh were unchanged at Rs 2,300-2,900 and in Punjab, rates were also at 2,400-3,100, they said. In the ready business, over 12,000 bales of cotton changed hands between Rs 5,500-7,000, they said.
Cotton Analyst Naseem Usman said that daily-intake lifted by mills' buying, who were expecting decline in the rates in the coming days but hopes faded. Fine quality was short of demand and causing a rise in demand and prices, as well, brokers said. There were speculations that India might ban export of cotton to save local cotton industry, they said.
According to the Reuters, the NY cotton registered its largest one-day gain in six months on Wednesday, as mill buying lifted prices and gave fibre back much of the ground it had lost since reaching nine-month highs last week. The most-active May cotton contract on ICE Futures US rose 2.55 cents, or 3.1 percent, to settle at 84.38 cents per pound, its largest one-day gain since early August.
Trading volumes were slightly higher than average on Wednesday, near 27,000 lots compared with a 30-day average of about 24,000, according to preliminary Thomson Reuters data. The front-month on a continuous basis rose 2.4 cents or three percent, to 82.73 cents per lb, its biggest one-day rise in a month. Cotton declined more than four percent since reaching its highest price in nine months last Wednesday. The steep drop pushed cotton to a perceived floor and prompted buying.
The following deals were reported: 200 bales of cotton from Sanghar at Rs 5,500, 600 bales from Naoabad at Rs 6,100, 400 bales from Mir Pur Mathelo at Rs 6,600, 400 bales from Rohri at Rs 6,600, 200 bales from Lodhran at Rs 5,500, 925 bales from Melsi at Rs 6,250, 600 bales from Kot Islam at Rs 6,300, 600 bales from Rajan Pur at Rs 6,400, 400 bales from Burewala at Rs 6,400, 1,160 bales from Shadan Lund at Rs 6,450, 250 bales from Chistian at Rs 6,450, 400 bales from Uch Sharif at Rs 6,500, 800 bales from Basti Malook at Rs 6,500, 400 bales from Haroonabad at Rs 6,550, 1,800 bales from Bahawal Pur at Rs 6,550/6,600, 200 bales from Liaquat Pur at Rs 6,600, 400 bales from Yazman Mandi at Rs 6,650, 800 bales from Khan Pur at Rs 6,800, 800 bales from Mian wali at Rs 6,825, 600 bales from Jalal Pur (Condition) at Rs 7,000, they said.
===========================================================================
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 27.02.2013
===========================================================================
37.324 Kgs 6,450 155 6,605 6,555 +50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,912 155 7,067 6,014 +53
===========================================================================
Comments
Comments are closed.