Increased buying by mills lifted daily-intake on the cotton market on Monday, this was a visible change after a long time, dealers said. The official spot rate was inert at Rs 6,800, they said. Rates of seed cotton in Sindh were unchanged at Rs 1800 and Rs 2400, while in Punjab prices showed no change at Rs 1800 and Rs 2500, they said.
In the ready business, 5,000 bales of cotton changed hands between Rs 5,900 and Rs 6,900, they said. Some experts were of the view that depleting unsold stock propelled mills to cover their short-terms requirements. They said that improvement in activity was giving an impression that cotton production might depict decline in the Pakistan Cotton Ginners Association (PCGA) fortnightly report. This factor helped the rates to hold the present levels, they said. Cotton prices were up in the New York market, so traders started profit-taking, which caused decline in the rates, dealers said.
Cotton analyst, Naseem Usman said that prices might be range-bound in the near future due to short crop. According to the Reuters, in India cotton prices may come down in the coming days due to lacklustre condition in the international market. Indian government agencies have procured 2.5 million to three million bales and they have started releasing the stocks.
"Fresh export deals have not been signed from India because of uncompetitive prices in the global market. Indian cotton is expensive as of now," said Prerana Desai, vice-president of research at Kotak Commodities. There is no export parity and market estimates show that eight million bales have already been shipped. In New York, the most active July contract on the Intercontinental Exchange was down 1.05 percent at 86.70 cents per lb at 1252 GMT.
The following deals were reported: 200 bales of cotton from Lodhran at Rs 6300, 1000 bales from Kotla Mussa at Rs 6400-6550, 2400 bales from Hasil Pur at Rs 6500, 800 bales from Mian Chano at Rs 6500, 400 bales from Uch Sharif at Rs 6650, 1000 bales from Rahim Yar Khan at Rs 6725, 200 bales from Mallsi at Rs 6900, 400 bales from Uch South (Condition) at Rs 700 and 3206 bales from Lodhran (three-month credit) at Rs 700, 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 13.04.2013
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37.324 Kgs 6,800 155 6,955 6,955 NIL
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Equivalent
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40 Kgs 7,288 155 7,443 7,443 NIL
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