Prices were down on the cotton market on Friday in process of modest trading, dealers said. The official spot rate, after maintaining at firm trend for a long time, shed Rs 50 to Rs 6950, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2500 and Rs 2800, in Punjab, prices were inert at Rs 2500-3200, dealers said. In the ready session, around 2,800 bales of cotton changed at Rs 6800-7050, dealers said.
Dealers attributed the decline in the rates to buyers less interest because they don't want of make deals in low quality. Cotton analyst, Naseem Usman said that it is likely that the country to achieve expected cotton production this year, in the meantime, fine quality is short in demand. Other factors are lower yarn rates and gas shortage in Punjab, he said.
Reuters adds: US cotton futures fell for a second straight session on Thursday, ahead of the release of government export data that traders say could indicate falling demand for the fibre. The US Department of Agriculture will release a weekly tally for domestic cotton shipments on Friday, with traders expecting a figure of around 100,000 running bales for the 2013/14 crop, versus the previous week's exports of 120,300. Brazil will ask the World Trade Organisation to determine whether a new US farm law resolves a dispute over cotton subsidies, a move that delays trade retaliation against Washington and gives a final opportunity for negotiations. Mali's raw cotton production for the 2013/14 season will reach around 436,600 tonnes, down from 450,000 tonnes last year and well below an initial forecast, the West African nation's cotton company CMDT said.
The following deals reported as 400 bales of cotton frin Fort Abbas sold at Rs 6800-6900, 200 bales from Yazman Mandi at Rs 6900, 200 bales from Faqir wali at Rs 7000, 400 bales from Haroonabad at Rs 7000, 400 bales from Chichawatni at Rs 7050, 400 bales from Chistian at Rs 7050 and 800 bales from Jalal Pur at Rs 7050, they added.
===========================================================================
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 20.02.2014
===========================================================================
37.324 Kgs 6,950 155 7,105 7,155 -50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 7,448 155 7,603 7,657 -54
===========================================================================
Comments
Comments are closed.