Prices maintained an upward trend on the cotton market on Friday in the process of forward buying by mills and spinners, dealers said. Resulting, the official spot rate was higher by Rs 50 to Rs 5300, dealers said. In Sindh, seed cotton prices were unchanged at Rs 2700 and Rs 3000 and in Punjab rates also followed same pattern after showing no change in the overnight levels at Rs 2800 and Rs 3100, they said.
In the ready business, over 25,000 bales of cotton changed hands between Rs 4800 and Rs 5600, they said. Some brokers said that prices may maintain firm posture due to persistent rise in forward buying by mills and spinners. Uncertainties over the next crop size are creating jitters among textile sector and this factor is also pushing prices up with the passage of time, they said. They also said that cotton traders were expecting positive outcome from the discussion of Finance Minister, Ishaq Dar and textile stake-holders on Saturday. Cotton analyst, Naseem Usman said that to restore business confidence among textile and value-added sectors, Finance Minister, Ishaq Dar holding a discussion with the All Pakistan Textile Mills Association (APTMA). In the absence of some solid facilities, millers were facing problems, higher cost of production and some other issues would be discussed in the meeting, he said.
Reuters adds: ICE cotton futures fell for the second straight session on Thursday as US producers took advantage of prices near 1-month highs to lock in sales as the harvest picked up in the world's top exporter. Prices surged earlier in the week on concerns about rain damage to South Carolina's crop and a delayed reaction to a reduction in the US government's output projection, but traders noted that overseas demand remained limited and producers still had a significant amount of fiber to sell.
December cotton on ICE Futures US settled down by 0.32 cent on Thursday, a 0.5 percent loss, to 63.44 cents per pound. It traded within a range of 63.15 and 63.76 cents a pound. The following deals reported: 800 bales from Mirpurkhas at Rs 4800-4900, 2000 bales from Sanghar at Rs 4800-5000, 400 bales from Vindar at Rs 5450, 4000 bales from Khairpur at Rs 5400-5500, 5000 bales from Upper Sindh at Rs 5550-5600, 600 bales from Chichawatni at Rs 5290, 400 bales from Chistian at Rs 5475, 1000 bales from Rajanpur at Rs 5500-5600, 600 bales from Alipur at Rs 5500, 2000 bales from Fazilpur at Rs 5500, 400 bales from Faqir wali at Rs 5500, 1000 bales from Fort Abbas at Rs 5500, 200 bales from Madrassa at Rs 5500, 200 bales from Dunga Bunga at Rs 5500, 400 bales from Tonsa Sharif at Rs 5500, 400 bales from Dera Ghazi Khan at Rs 5500, 800 bales from Shadan Lund at Rs 5500, 1200 bales from Ahmedpur at Rs 5500, 1000 bales from Layyah at Rs 5600, 400 bales from Khanpur at Rs 5600, 600 bales from Rahim Yar Khan at Rs 5600, 400 bales from Mohammadpur Dewan at Rs 5600, 400 bales from Sadiqabad at Rs 5600 and 400 bales from Mianwali at Rs 5600, dealers 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 15-10-2015
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37.324 kg 5,300 135 5,435 5,385 + 50
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Equivalent
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40 Kgs 5,680 145 5,825 5,771 + 54
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