Prices stabilised on the cotton market on Tuesday as leading ginners were not keen to make big deals due to limited stock with them, dealers said. The official spot rate was unchanged at Rs 5450, dealers said. In the ready session, over 6000 bales changed hands between Rs 4350-5600, they said. Seed cotton rates in Sindh were unchanged at Rs 2000-2600 and in Punjab prices registered at Rs 2400-3100, they said.
Some brokers said that drastic cut in the NY cotton futures failed to influence the present trend in the market as spinners and mills were looking for big deals at the reasonable rates, but in vein because the ginners, who were hopping for better rates showed readiness just in selling of small lots. Cotton analyst, Naseem Usman, commenting on the global cotton demand, said that reports showing a rise in consumption, but it is before time to predict about it, in the meantime, he said that if euro improves from the current level, this factor will definitely push the demand up, both in domestic and international market.
Recently, reports appeared that global cotton demand will exceed total production for the first time in six years in the 2015/16 crop year, as farmers cut back on acreage devoted to cotton amid futures prices that reached their lowest levels since 2009 earlier this year, according to a Reuters survey of traders, analysts and co-operatives.
Reuters adds: ICE cotton futures slipped by 2 percent on Monday as investors booked profits from last Friday's solid gains ahead of a key government crop report that will give the first forecasts for the upcoming season. Concerns that a big speculative investor with a large long position may start to exit bullish bets, particularly after weak export sales data last Thursday, have pressured prices, said O A Cleveland, Mississippi-based economist who follows cotton. "Should that long begin to exit some of its positions the market could lose as much as 200 points," he said.
The following deals reported: 200 bales from Multan at Rs 5350, 416 bales from Chichawatni at Rs 4900, 200 bales from Karror Pakka at Rs 5100, 800 bales from Haroonabad at Rs 5300-5325, 400 bales from Hasilpur at Rs 5350-5500, 400 bales from Bahawalpur at Rs 5475, 600 bales from Kabbirwala at Rs 5500, 1000 bales from Sadiqabad at Rs 5575-5600, same figure from Rahim Yar Khan at Rs 5600 and same number from Khanpur at the same rate, they said.
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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 11.05.2015
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37.324 Kgs 5,450 150 5,600 5,600 NIL
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Equivalent
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40 Kgs 5,841 160 6,001 6,001 NIL
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