Trading activity showed a significant increase on the cotton market on Tuesday on rising fears of short supply, dealers said. The official spot rate was down by Rs 50 to Rs 5,300, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said.
In the ready business, deals of over 14,000 bales of cotton finalised between Rs 5125 and Rs 5600, they said. Cotton analyst, Naseem Usman, said that there is no fundamental change to observe just mills and spinners were making deals to keep themselves away from future losses.
Rising uncertainties on both the political and economic fronts, not helping the buyers to do business with a peace of mind, other brokers said. Trading activity picked up partly because of an appreciation in the dollar's rate, they observed. According to reports, agriculture experts have advised farmers to destroy remains of cotton crop from their fields after last picking to eliminate pests that survive on cotton remains and damage the next crop.
Reuters adds: Cotton futures dropped the most in a single session in more than a month on Monday, pulling back from sharp gains last week as the US dollar rose to a more than eight-month high and pressured greenback-traded commodities like cotton.
It got a little ahead of itself on Friday," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California, noting that certificated stocks had built on their significant gains the prior week. "Guys who bought it on nerves Friday sold it on reality." The March cotton contract on ICE Futures US settled down 1.29 cent, or 2 percent, at 62.64 cents per lb, the sharpest single-session drop since October 22. The contract finished the month of November down 0.36 cent, or 0.6 percent.
The following deals reported, 400 bales of cotton from Kazi Ahmed at Rs 5125-5160, 200 bales from Nawab Shah at Rs 5250, 200 bales from Gambat at Rs 5300, 600 bales from Mehrabpur at Rs 5350, 1600 bales from Rohri at Rs 5450-5500, 600 bales from Faqirwali at Rs 5300, 400 bales from Haroonabad at Rs 5300, 500 bales from Hasilpur at Rs 5375-5450, 400 bales from Jalalpur at Rs 5500, 1000 bales from Mianwali at Rs 5500, 600 bales from Liaqatpur at Rs 5500, 2400 bales from Sadiqabad at Rs 5550-5600, 2800 bales from Rahim Yar Khan at Rs 5550-5600 and 2000 bales from Khanpur at Rs 5550-5600, 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 30-11-2015
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37.324 kg 5,300 135 5,435 5,485 -50
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Equivalent
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40 kgs 5,680 145 5,825 5,879 -54
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