Prices drifted lower on the cotton market on Saturday amid panic selling by ginners, dealers said. The official spot rate failed to sustain overnight gains, shedding Rs 50 to Rs 5,450, they added. In ready session, over 20,000 bales of cotton changed hands between Rs 5450-5650, they said. In Sindh, prices of seed cotton were at Rs 2525 and Rs 2550 and in Punjab prices were at Rs 2600 and Rs 2650, they said.
Most of the mills and spinners were trying to buy as much as they can as the ginners were also ready to dispose of unsold stock. They said that supply position was good and it is expected that arrivals of seed cotton will improve in the coming days, so, they prefer to sell their stuff. The ginners were getting better-than-expected prices amid comfortable supply of phutti, they added. Cotton analyst, Naseem Usman said that the positive news is that China has started importing Pak cotton yarn, which will help prices to shed sharp losses in days to come.
Reuters adds: Cotton futures rose on Friday, extending their winning streak to four, as dry and hot weather in the major producing region of Texas fuelled supply fears. The benchmark December cotton contract on ICE Futures US closed up 0.26 cent at 66.18 cents a lb.
The following deals reported: 2200 bales from Sadiqabad at Rs 5475-5550, 2000 bales from Tando Adam at Rs 5475-5525, 2400 bales from Sanghar at Rs 5450-5500, 2000 bales from Mirpurkhas at Rs 5450-5525, 1200 bales from Kotri at Rs 5475-5500, 1000 bales from Hyderabad at Rs 5475-5500, 400 bales from Shahpur Chakar at Rs 5500, 400 bales from Vinder at Rs 5475-5500, 1000 bales from Sahiwal at Rs 5600-5625, 1200 bales from Khanewal at Rs 5600-5625, 800 bales from Vehari at Rs 5600-5625, 1000 bales from Chichawatni at Rs 5600-5650, 1600 bales from Burewala at Rs 5600, 400 bales from Jahania at Rs 5600, 600 bales from Shujabad at Rs 5600, 1000 bales from Kabirwala at Rs 5600-5625, 400 bales from Bahawal Nagar at Rs 5600, 600 bales from Mian Chanu at Rs 5600-5625, 1000 bales from Haroonabad at Rs 5600, 800 bales from Hasilpur at Rs 5600-5625, 400 bales from Gojra at Rs 5600, 400 bales from Garmaraja at Rs 5550 and 400 bales from Samundri at Rs 5600, 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 22.08.2014
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37.324 Kgs 5,450 155 5,600 5,650 -50
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Equivalent
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40 Kgs 5,841 155 6,001 6,054 -53
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