A fresh buying interest helped the rates to maintain upward trend on the cotton market on Tuesday, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices at Rs 1800 and Rs 2800, they said. In the ready business, over 13000 bales of cotton changed bands at Rs 5100-5600, they said.
Trading activity improved further as some needy spinners came back to market which helped rates to recover part of the recent losses, some experts said. Decision by the government to allocate Re-gasified Liquid Natural Gas (RNLG), propelled the mills and spinners to make new deals, cotton analyst, Naseem Usman said.
Recovery in the world markets also influenced local trading as many spinners rushed back to replenish their stock, other analysts said. Most of the leading cotton markets, including stock exchange around the world witnessed upward, these factors also helped the volume of business to go up, they said.
Reuters adds: Cotton futures rose to their highest in more than a week on Monday on broad strength across commodities markets, recovering after a speculator sell-off sent prices of the fibre to over 6-1/2-year lows last week. Commodity prices gained on Monday after a flurry of reassurances from Chinese leaders that the economy of the leading consumer would remain on sound footing.
The Chinese stimulus plan "aided the bullishness" in the commodities market, pushing up cotton prices, said Chris Kramedjian, a risk management consultant with INTL FCStone in Nashville, Tennessee. Last week, prices hit 54.53 cents, their lowest since June 2009, amid concerns over demand for cotton and the release of a massive stockpile held by China. The May contract on ICE Futures US settled up 0.27 cent, or 0.47 percent, at 57.38 cents per lb, after climbing as high as 57.9 cents.
Reuters adds: Market sources said that rise in international market, gave a boost to the prices. Cotton analyst, Naseem Usman said that fine quality of seed cotton is diminishing with the passage of time and coupled with slight improvement in demand helped the prices to go up. Rise in fresh buying was a positive change because for a long-time barring a couple of deals from needy spinners, the market was lack of buying interest, he added.
Almost all the leading cotton producing textile manufacturing countries, including the US, China and India were currently facing a recession-like situation, the dampened demand for fabrics and other textile products the world over has directly impacted cotton trade. Brokers feared falling cotton prices would have direct implications on the next cotton crop. The following deals reported: 2000 bales of cotton from Ghotki at Rs 5100, 400 bales from Fort Abbas at Rs 5000, 400 bales from Yazman Mandi at Rs 5000, 1000 bales from Bahawalpur at Rs 5300, 980 bales from Mianwali at Rs 5300-5400, 1200 bales from Hasilpur at Rs 5325, 2000 bales from Sadiqabad at Rs 5400-5500, 2000 bales from Mohammadpur Dewan at Rs 5500, 800 bales from Rahim Yar Khan at Rs 5500, 1200 bales from Rajanpur at Rs 5500 and 900 bales from Fazilpur at Rs 5600, 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 07-03-2016
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37.324 kg 5,250 135 5,385 5,385 NIL
Equivalent
40 kgs 5,626 145 5,771 5,771 NIL
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