Upward trend persisted on the cotton market on Saturday as needy mills had no choice but to keep on purchasing to meet the forward requirements, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 12000, they said.
Phutti prices in Sindh were at Rs 4500 and in Punjab rates were higher at Rs 6400, they said. Approximately 8000 bales of cotton changed hands between Rs 12000-14000, they added. According to the mills continued cotton buying to meet their future needs because it looks that prices may maintain their present pace in the coming days.
Rising prices in the world market and short supply were the basic factors causing uncertainties among the cotton trader, they said. On the other hand, the growers are now trying to do deals directly to achieve net profit due to handsome rates of phutti, they said.
On Friday the US cotton futures finished up the seven-cent daily limit at an all-time high amid speculative buying, scarce supplies and signs that global economic growth is gathering steam in 2011, analysts said. The key May cotton contract on ICE Futures US finished locked at the high of $2.127 per lb. The session low was $2.064. For the week, the market is up 15.45 percent, the best performance since 19.3 percent the week ending December 5. However volume was on the light side at near 22,000 lots, about 30 percent below the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: some 600 bales of cotton from Mir Pur Khas sold at Rs 12000, 400 bales of cotton from Khair Pur at Rs 13000, 2400 bales of cotton from Upper Sindh at Rs 14000, 400 bales of cotton from Burewala at Rs 12700, 400 bales of cotton from Shujabad at Rs 12700, 1600 bales from Rahim Yar Khan at Rs 13000/14000, 400 bales of cotton from Sadiqabad at Rs 13000, 400 bales of cotton from Jhang at Rs 13500, 800 bales of cotton from Mianwali at Rs 13500/13900, 400 bales of cotton from Bhawana at Rs 13500, 400 bales of cotton from Haroonabad at Rs 13500, 400 bales of cotton from Ali Pur at Rs 14000 and 400 bales of cotton from Jatoi at Rs 14000.
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The KCA Official Spot Rate for Local Dealings in Pak 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 04.03.2011
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37.324 Kgs 12,000 120 12,120 12,120 NIL
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Equivalent
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40 Kgs 12,860 120 12,980 12,980 NIL
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