Prices were firm on the cotton market on Friday as the ginners stopped panic selling, which saved the rates from falling sharply in the near future, dealers said. The official spot rate was unchanged at Rs 5550, they said. In the ready business over 10,000 bales of cotton changed hands between Rs 5525-5700, they said.
The prices of seedcotton in Sindh were improved by Rs 50 to Rs 2600-2650, in the Punjab low type gained Rs 100 to Rs 2500 and best type was up by Rs 50 to Rs 2550, they added. Prices did not show sharp fluctuation as a result of persistent demand by mills and it looks that rates may not come down due to forward buying by mills, Naseem usman said.
Some brokers said that during the last sessions it was feared the prices may continue to fall if phutti arrivals continue to rise in days to come. The ginners were under pressure and decided not to lower the asking prices analysts said and added that next direction of market will almost depend on the attitude of the ginners.
If phutti arrivals halted or stuff damaged by the heavy monsoon rains they may face losses, they added. According to the Reuters, the NY cotton futures settled marginally firmer on Thursday on buying by small speculators as players adjusted their positions before the release of key government data, brokers said.
The market was awaiting Friday's vital US jobs data and looking forward to the key US Agriculture Department monthly supply/demand report the following Friday, August 10. The benchmark December cotton contract on ICE Futures US rose 0.41 cent to settle at 70.97 cents per lb, dealing from 70.21 to 71.30 cents. Last Wednesday, the market closed at 69.51 cents in the lowest settlement for the December contract in almost a month, Thomson Reuters data showed. Volume traded on Thursday amounted to around 9,900 lots, almost three-fourths below the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 1000 bales of cotton from Shahdad Pur sold at Rs 5650/5700, 1200 bales of cotton from Sanghar at Rs 5650/5700, 1400 bales of cotton from Tando Adam at Rs 5650/5700, 1600 bales of cotton from Mir Pur Khas at Rs 5650/5700, 400 bales of cotton from Kotri at Rs 5700, 200 bales of cotton from Chistian at Rs 5500, 400 bales of cotton from Lodhran at Rs 5525/5600, 400 bales of cotton from Shujabad at Rs 5550/5600, 200 bales of cotton from Sahiwal at Rs 5575, 200 bales of cotton from Chinoit at Rs 5600, 200 bales of cotton from Jhang at Rs 5600, 600 bales of cotton from Garh Mahraja at Rs 5600, 200 bales of cotton from Pir Mahal at Rs 5600, 200 bales of cotton from Kot Adu at Rs 5600, 600 bales of cotton from Mian Channu at Rs 5600, 200 bales of cotton from Qabola at Rs 5600, 600 bales of cotton from Burewala at Rs 5600/5650, 200 bales of cotton from Chichawatni at Rs 5600, 400 bales of cotton from Bahawal Pur at Rs 5625, 200 bales of cotton from Depal Pur at Rs 5650, 200 bales of cotton from Gojra 5650, 200 bales of cotton from Gajjoo Mandi at Rs 5650 and 200 bales of cotton from Khanewal 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 02.08.2012
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37.324 Kgs 5,550 155 5,705 5,705 NIL
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Equivalent
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40 Kgs 5,948 155 6,103 6,103 NIL
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