Activity slowed down on the cotton market on Saturday as ginners did not take interest in selling at the lower rates, dealers said. The official spot was unchanged at Rs 5800, they said. In the ready business over 5000 bales of cotton changed hands between Rs 5800-6000, they said. The price of seedscotton in Sindh low type was up at Rs 2650 and fine quality at Rs 2675, in Punjab rates were at Rs 2550-2700, they added.
Naseem Usman said that ginners were not ready to sell cotton at the lower rates, which forced most mills and spinners to keep away from the normal trade. The basic factor behind the cautious attitude by the ginners is fresh rain in Punjab, encouraging the ginners not to indulge in panic selling, other analysts said. According to the Reuters, cotton futures rose for a third consecutive session on Friday as fibers continued to get a fillip from the soaring grains market and early, tentative supply fears emerged after exchange stocks sank to February lows.
The gains bucked an otherwise dismal sentiment across commodities and financial markets which were spooked about the euro-zone debt crisis after a Spanish region asked for financial aid on Friday. The benchmark December cotton contract on ICE Futures US nudged 0.43 percent higher to settle at 72.94 cents per lb, after hitting an intraday high of 73.29 cents late in the day.
Trading volume was particularly low though at just over 9,000 lots, with some traders sitting on the sidelines unsettled by the range-bound prices over the past three weeks. The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 5900, 600 bales of cotton from Mir Pur Khas at Rs 5850/5900, 400 bales of cotton from Tando Adam at Rs 5900, 400 bales of cotton from Shahdad Pur at Rs 5900, 400 bales of cotton from Hyderabad at Rs 5900, 200 bales of cotton from Kotri at Rs 5900, 200 bales of cotton from Jahanian at Rs 5800, 200 bales of cotton from Vehari at Rs 5850, 800 bales of cotton from Burewala at Rs 5900/5950, 200 bales of cotton from Arif Wala at Rs 5950 and 600 bales of cotton from Khanewal at Rs 6000.
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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 20 07.2012
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37.324 Kgs 5,800 130 5,930 5,930 NIL
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Equivalent
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40 Kgs 6,216 130 6,346 6,346 NIL
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