Cotton yarn demand improved on the cotton market on Friday amid modest trade activity, dealers said. The official spot rate was unchanged at Rs 6800, they said. In Punjab, prices of phutti were at Rs 3700-3800, as per 40 kg, they said. In ready session, around 5000 bales of cotton changed hands between Rs 5935 and Rs 7075, they said.
According to market sources, cotton prices were steady on persistent demand by mills and spinners. Cotton analyst, Naseem Usman said that encouraging factor is that demand for cotton yarn from India improved in the process of trading. Influenced by the international track and shortage of cotton lint may cause firmness in the local rates, he added.
The United States of Agriculture Department (USDA) weekly reports showing an increase of four percent, may help the rates to sustain present levels in the coming days, he said. Other experts said that only four lac bales of cotton left with the ginners, so ginners may refrain from haste selling. They said that as a result of dry and hot weather in the country, cotton stock would lose their moisture and reduce the weight of bales, which was not in ginners' interest.
In the meantime, exports of textile and clothing dropped over two percent, they said. The Punjab Agriculture Department (PAD) has advised the cotton growers to sow their crop between April 15 to May 15 and only use approved varieties of BT or Hybrid cotton seeds.
Besides, the PAD spokesman warned the owners of ginning factories, kilns and oil factories owners to complete destroy their ginning waste by March 31 so as to avoid the attack of pink bollworm.
Adds Reuters: ICE cotton futures were subdued on Thursday on muted speculative activity ahead of a federal acreage report due next week. The May cotton contract on ICE Futures US settled down 0.07 cent, or 0.09 percent, at 77.27 cents per lb. It traded within a range of 77.23 and 77.97 cents a lb.
Total futures market volume fell by 8,283 to 19,113 lots. Data showed total open interest gained 1,573 to 279,703 contracts in the previous session. The following deals reported: 300 bales of cotton from Shahdadpur at Rs 5935-5975, 1400 bales from Dharki at Rs 6975-7075 and 600 bales from Rahim Yar Khan at Rs 7000-7050, 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 1-1/16"
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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 22.03.2017
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37.324 kg 6,800 135 6,935 6,935 NIL
Equivalent
40 kgs 7,288 145 7,433 7,433 NIL
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