Prices were up on the cotton market on Saturday amid rising anticipations about further increase in the rates, dealers said The Karachi Cotton Association (KCA) official spot rate was unchanged Rs 7000, they said. The prices of seed-cotton in Sindh went up by Rs 200-100 at Rs 2500-2900 and rates picked up Rs 100 in Punjab to Rs 2300-3100, they said.
In ready dealings nearly 9,000 bales of cotton changed hands between Rs 7000-7,500, they added. According to the market sources mills showed improved interest in fresh buying of cotton. As a result of downpour in Sindh cotton belt many ginning factories were closed down and Pak cotton traders were importing cotton from India at reasonable rates, Naseem Usman said.
Other brokers said that our importers have imported nearly 0.15 million bales of cotton from India and it looks that if India keeps prices at a certain level, country may import more cotton but quality factor to dominate. On Friday the NY cotton futures fell for the first time in five sessions, unravelling from the prior session's two-month high, as investors gear up for a key government crop report early next week.
The key December cotton contract on ICE Futures US fell 1.76 cents or 1.55 percent to finish at $1.1187 per lb, after dealing between $1.1044 and $1.1425. The price weakness originated in Asian markets, with the three-month rolling cotton contract on the Zhengzhou Commodity Exchange falling away from a six-week peak hit on Thursday.
According to a report India will continue with unrestricted cotton exports in the new marketing year beginning October. 1, Trade Secretary Rahul Khullar told reporters on Friday, a move that could depress global prices which have halved since a record high in March. India's cotton exports have already been cited as a key factor in dictating fibre prices in the 2011/12 season by the chief executive of the world's biggest cotton merchant.
Besides, Chinese analysts expect the country's cotton output in 2011/12 crop year to be 7.4 million tonnes, 17.8 percent higher than their estimate for 2010/11, according to a survey of six analysts contacted by Reuters on Friday. The median forecast is an increase of 1.12 million tonnes from the 2010/11 median estimate of 6.28 million tonnes by the same analysts, and higher than the US Department of Agriculture's August forecast of 7.19 million tonnes.
The following deals were reported: 3000 bales from Punjab stations at Rs 7500, 400 bales from Sindh stations at the same rate, 1000 bales of cotton (exporter to mill done at Rs 7200-7300), 100 bales from Hyderabad at Rs 7200, 300 bales from Vehari at Rs 7000-7200, 200 bales from Gajjo Mandi at Rs 7100, 400 bales from Bahawal Nagar at Rs 7100, 200 bales from Arif Wala at Rs 7100, 200 bales from Pir Mahal at Rs 7100, 200 bales from Hasil Pur at Rs 7200, 200 bales from Multan at Rs 7200, 200 bales from Sillan Wali at Rs 7250, 400 bales from Burewala at Rs 7250-7275, 400 bales from Noor Pur at Rs 7300, 200 bales from Kabir Wala at Rs 7300, 200 bales from Bhakkar at Rs 7300, 200 bales from Chichawatni at Rs 7300, 200 bales from Head Bakani at Rs 7300 and 200 bales from Shujabad at Rs 7300.
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Expenses Ex-Karachi Ex. KHI. As on Ex-Karachi
09.09.2011 in Rupees
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37.324 Kgs 7,000 130 7,130 7,130 NIL
Equivalent
40 Kgs 7,502 130 7,632 7,632 NIL
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