Prices surged on the cotton market on Saturday amid limited buying by mills due to short supply, dealers said. The official spot rate was higher by Rs 125 to Rs 6,750, dealers said. In Sindh seed cotton prices were unchanged at Rs 3300 and Rs 3450 and in Punjab, phutti prices were also inert at Rs 3100 and Rs 3400 per 40 kg, respectively, they said.
In ready business, over 1000 bales of cotton changed hands between Rs 6850 and Rs 7100, they said. Some leading brokers were of the opinion that due to short supply position, the mills were not making normal business. Sharing the same opinion, cotton analyst, Naseem Usman said that mills or spinners were not keen to make new deals at this stage as moisture content in phutti after downpour in the cotton growing areas. It is understood that if rains continue in the cotton belt, so, prices may gain further strength in the coming days, other brokers said.
Reuters adds: Cotton futures hit fresh two-year highs on Friday, following through from Thursday's rally when prices broke through the key 75-cent level, on speculative buying as weather concerns persisted. The following deals were reported: 400 bales of cotton from Pithro at Rs 7000, 500 bales from Shahdadpur at Rs 6850-6950, 200 bales from Gojra at Rs 7000 and same figure from Khanewal at Rs 7100, 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 05-08-2016
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37.324 kg 6,750 135 6,885 6,785 + 100
Equivalent
40 kgs 7,234 145 7,379 7,272 + 107
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