A kind of firmness prevailed on the cotton market on Tuesday as prices held the present levels amid tight supply of seed cotton, dealers said. The official spot rate was unchanged at Rs 6,750, they said. Rates of seed cotton in Sindh were unchanged at Rs 2,400-3,100 and in Punjab prices were inert at 2,300-3,340, they said. In the ready business, trading activity was improved as over 8,000 bales of cotton changed hands between Rs 6,150 and Rs 7,200, they said.
Several mills were interested in fresh buying and some of them finalised deals even higher rates amid rising fears about further rise in the prices in days to come, cotton analyst, Naseem Usman said. It looks that price may not come down in the near future, other brokers said, adding that ginners, who had little stock of unsold stock, would prefer to keep stock with them in anticipation of increase in the rates. According to Reuters, the NY cotton declined on Monday on profit taking and producer selling following recent gains, but prices found support when they dipped to the 10-day moving average that prompted mills to buy. The most-active May cotton contract on ICE Futures US slid 0.16 cent, or 0.2 percent, to settle at 86.72 cents per pound.
Cotton prices set a 10-month high on Friday. The May contract found support on Monday near its 10-day moving average at about 85.75 cents, when buying developed. The following deals were reported: 400 bales of cotton from Tando Adam (Codition) at Rs 6,700, 400 bales from Mian Chano at Rs 6,150, 400 bales from Garah Mor at Rs 6,300, 2,200 Faqir Wali at Rs 6,375/6,500, 600 Fort Abbas at Rs 6,400-6,500, 600 bales from Mian Wali at Rs 7,000, 300 bales from Burewala at Rs 7,000, 1400 bales from Sadiqabad at Rs 7,000, 400 bales from Kot Sabzal at Rs 7,000, 1,000 bales from Rahim Yar Khan(Condition) at Rs 7,200, 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 11.03.2013
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37.324 Kgs 6,750 155 6,905 6,905 NIL
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Equivalent
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40 Kgs 7,234 155 7,389 7,389 NIL
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