Some improvement was seen on the cotton market on Friday as mills and exporters try to cover the short-term needs, dealers said. The official spot rate was unchanged at Rs 5400, they added. Prices of seedcotton in Sindh were inert at Rs 1700-2300 and in the Punjab at Rs 2000-2700, they said. Approximately, 4200 bales of cotton changed hands between Rs 4300-5700, they added.
Market sources said that shortage of fine quality caused firmness in the prices but some of them said that it is very much likely that rates may come down of low quality of cotton in the absence of demand. Naseem Usman said that exporters buying is a genuine factor, which is keeping prices firm, and added that Pakistan's Life-style exhibition from 12-15 April in India, is giving an impression that Pak products are likely to fetch buyers due to good quality.
According to the Reuters the NY cotton futures ended the shortened week lower on Thursday, extending the prior session's losses as investors continued to unwind long positions after Federal Reserve minutes showed policymakers had little appetite for more economic stimulus.
The US commodity and financial markets will be closed on Friday for the Good Friday holiday, and will reopen on Monday. The benchmark May contract on ICE Futures US closed down 0.78 cent, or 0.87 percent, at 88.54 cents per lb, having traded from 88.20 to 90.44 cents. The May contract's volume was 13,413 lots, compared with 20,121 lots in Wednesday's heavy selling. New-crop December slipped 0.82 percent, or 0.72 cent. It finished at 87.54 cents, near the day's 87.46 low, unseen since December 29. Volume came to 3,609 lots.
The following deals were reported: 600 bales of cotton from Mir Pur Khas sold at Rs 4300-4500, 600 bales of cotton from Shahdad Pur at Rs 4300-4500, 600 bales of cotton from Sanghar at Rs 4300-4500, 600 bales of cotton from Nawab Shah at Rs 4500, 200 bales of cotton from Arif Wala at Rs 5000, 200 bales of cotton from Nasir Pur at Rs 5200, 447 bales of cotton from Liaquat Pur at Rs 5400, 200 bales of cotton from Dera Ghazi Khan at Rs 5600, 200 bales of cotton from Lodhran at Rs 5700, 600 bales of cotton from Ali Pur at Rs 5700.
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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 05.04.2012
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37.324 Kgs 5,400 130 5,530 5,530 NIL
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Equivalent
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40 Kgs 5,787 130 5,917 5,917 NIL
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