Modest fall was seen in the rates on the cotton market on Saturday amid comfortable supply position, dealers said. The official spot rate was down by Rs 50 to Rs 5,000, they added. In the ready session, around 18,000 bales of cotton changed hands at Rs 4750-5200, they said. In Sindh, rates came down by Rs 100 to Rs 1700 and Rs 2400, in Punjab prices also fell at Rs 2200 and Rs 2600, they said.
Market sources said that rising production and slow buying kept prices under pressure. Ginners were up set due to the emerging situation the world over, they said. Cotton analyst Naseem Usman said that leading buyer (China) of cotton out of the market, which creating depressing position for the traders and exporters. According to estimates by Cncotton.com, an industry website funded by state stockpiler China National Cotton Reserves Corporation, China, will harvest 6.51 million tonnes of cotton in the 2014-15 marketing year, a drop of 7 percent on the previous year.
Besides, the US farmers will slash their acreage dedicated to cotton by 14 percent next year, Informa Economics predicted on Friday, the latest sign that sinking futures prices will curb growers' appetite for the fibre. They will plant 9.43 million acres of cotton in the spring of 2015, the analytics firm said on Friday. That is down from 11 million this year and a small cut from last month's forecast of 9.46 million.
Reuters adds: Cotton futures rose on Friday in a bounce from the previous session's five-year low as traders exited positions ahead of the weekend and better-than-expected US export data assuaged some demand concerns. The most-active March cotton contract on ICE Futures US gained 0.88 cent, or 1.5 percent, to settle at 59.63 cents a lb, rebounding from the previous session's low of 58.57, the lowest level since September 2009.
The following deals reported: 2000 bales from Khairpur at Rs 4750, 600 bales from Upper Sindh at Rs 5075, 1400 bales from Dharanwala at Rs 5000, 2200 bales from Haroonabad at Rs 5000, 2000 bales from Faqirwali at Rs 5000, 400 bales from Chichawatni at Rs 5000, 200 bales from Fort Abbas at Rs 5000, 400 bales from Chistian at Rs 5000, 400 bales from Bahawalpur at Rs 5000, 400 bales from Lodhran at Rs 5000-5050, 1000 bales from Khanewal at Rs 5050-5150, 1000 bales from Yazman Mandi at Rs 5100-5125, 800 bales from Tonsa Sharif at Rs 5100, 600 bales from Bakhar at Rs 5100, 1000 bales from Bakhar at Rs 5100, 400 bales from Shujabad at Rs 5100, 200 bales from Shadan Lund at Rs 5100, 600 bales from Alipur at Rs 5100- 5150, 400 bales from Silanwali at Rs 5125, 400 bales from Chak Madrassa at Rs 5150, 400 bales from Khanpur at Rs 5150, 800 bales from Rahim Yar Khan at Rs 5150, 1000 bales from Layyah at Rs 5150 and 800 bales from Mianwali at Rs 5150-5200, they added.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 14.11.2014
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37.324 Kgs 5,000 150 5,150 5,200 -50
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Equivalent
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40 Kgs 5,358 160 5,518 5,572 -54
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