Most of the mills and spinners were on the sidelines amid expectations of fall in prices, dealers said on the cotton market on Saturday. The official spot rate was inert at Rs 5,600, they said. Prices of seedcotton in Sindh were at Rs 2100-2300 and in the Punjab at Rs 2300-2600, they said. In ready dealings about 10,000 bales of cotton changed hands at Rs 4,300-5775, they added.
Some leading mills showed interest in fresh buying of fine types but the ginners were not ready to lower the prices, they added. In the meantime demand for the fine types persisted as foreign buyers came back and looking interested in local stuff due to lower prices as compare to the international rates, they said. During the last sessions exporters were active buyers on hopes of rise in foreign demand for textile items, they said. According to the Federal Bureau of Statistic (FBS), during the first six months of the current fiscal year, textile exports fell, but traders are expecting, export performance may improve from the current level this year, other analysts said.
Reuters adds: on Friday the US cotton futures finished at a four-day high, finding firm footing from surprisingly healthy export sales shown in a government report, analysts said. Benchmark March cotton futures advanced 0.43 cent to settle at 98.60 cents per lb, after setting a higher low at 97.41 and a higher high at 98.70 cents. The contract closed at the four-day high, building on the uptrend that began at the 17-month low hit on December 14.
Friday's volume declined to 8,939 lots in late business, well below the 14,500 lots traded late on Thursday, according to preliminary Thomson Reuters data. Friday's volume was about 12 percent above the 30-day average but 16 percent below the 250 day average.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 4300, 200 bales of cotton from Nooriabad at Rs 4350, 400 bales of cotton from Shahdad Pur at Rs 4500, 400 bales of cotton from Tando Adam at Rs 4500, 600 bales of cotton from KUMB at Rs 5350, 400 bales of cotton from SUI at Rs 5350, 200 bales of cotton from Fort Abbas at Rs 5500, 200 bales of cotton from Burewala at Rs 5500, 1500 bales of cotton from Bahawal Pur at Rs 5550/5600, 200 bales of cotton from Vehari at Rs 5550, 200 bales of cotton from Lodhran at Rs 5600, 600 bales of cotton from Sadiqabad at Rs 5600/5700, 200 bales of cotton from Multan at Rs 5600, 1600 bales of cotton from Ali Pur at Rs 5600/5775, 200 bales of cotton from Rajan Pur at Rs 5650, 400 bales of cotton from Feroza at Rs 5650, 400 bales of cotton from Liaquat Pur at Rs 5650, 1200 bales of cotton from Mian Wali at Rs 5700/5750, 800 bales of cotton from Rahim Yar Khan at Rs 5700/5750 and 400 bales of cotton from Shujabad at Rs 5700.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 20.01.2012
===========================================================================
37.324 Kgs 5,600 130 5,730 5,730 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,002 130 6,132 6,132 NIL
===========================================================================