Increase in mills' buying pushed rates up on the cotton market on Tuesday in the process of trading, dealers said. The official spot rate went up by Rs 50 to Rs 4,750, dealers said. In Sindh, seed cotton prices were at Rs 2300 and Rs 2400 and in Punjab prices were at Rs 2300 and Rs 2400, they said. In the ready business, around 20,000 bales of cotton changed hands between Rs 4625 and Rs 4950, they said.
Cotton analyst, Naseem Usman attributed the rise to forward buying by mills and spinners. He said that after rains in Punjab and Sindh, crop size may come down, which is propelling buyers to make buying for the coming days. Other brokers said that quality factor may cause further increase in the prices, on the other hand, if exports of textile products go up, demand will also increase, they said.
Adds Reuters: ICE cotton rose for the third straight session on Monday on continued support from a key psychological level around 60 cents a pound and a reluctance to sell with prices still close to near eight-month lows hit last week. "There's demand to keep that from happening," said Louis Rose, an independent cotton trader and consultant at Risk Analytics in Memphis, Tennessee, noting that physical buying was preventing further price declines.
December cotton on ICE Futures US settled up by 0.11 cent, a 0.2 percent gain, at 60.75 cents per pound. It traded within a range of 60.10 and 60.95 cents a pound. Total futures market volume fell by 7,003 to 11,051 lots. Data showed total open interest fell 581 to 183,321 contracts in the previous session. The following deals reported: 2000 bales from Mirpurkhas at Rs 4625-4650, same figure from Sanghar at the same rate, 400 bales from Hyderabad at Rs 4650, 1200 bales from Shahdadpur at Rs 4650-4700, 1600 bales from Tando Adam at the same price, 2000 bales from Nawabshah at Rs 4750-4800, 400 bales from Kazi Ahmed at Rs 4800, 2400 bales from Kharpur at Rs 4800-4850, 2600 bales from Upper Sindh at the same rate, 200 bales from Multan at Rs 4775, 400 bales from Chistian at Rs 4800, same figure from Vehari at the same rate, same number from Sadiqabad at the same rate, 600 bales from Rajanpur at Rs 4850, same figure from Burewala at Rs 4800-4815, same number from Khanewal at Rs 4900, 1200 bales from Haroonabad, 400 bales from Ahmedpur all done at the same rate, 400 bales from Dera Ghazi Khan at Rs 4950 and 800 bales from Layyah done at the same rate, dealers said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 28.09.2015
===========================================================================
37.324 Kgs 4,750 135 4,885 4,835 +50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,091 145 5,236 5,182 +54
===========================================================================
Comments
Comments are closed.