Prices showed firmness on the cotton market on Thursday as gap widened between demand and supply of phutti arrivals ahead of Eid-ul-Fitr holidays, dealers said. Official spot rate was unchanged at Rs 5700, they said. In the ready business, over 11,000 bales of cotton changed hands between Rs 5750-5850, they said.
The prices of seedcotton in Sindh and Punjab were firm at Rs 2575-2675, they said. In late evening deals from Khanewal and Bahawalpur done at Rs 5900, they added. Commenting on the firmness in the prices some analysts said that phutti arrivals dropped during the last couple of sessions, which helped the rates to move up slightly. On the other hand, the ginners showed no hurry in selling, instead they were trying to increase the asking prices. The cautious mills were busy in forward buying, they said. According to the Reuters, the NY cotton futures jumped above 76 cents per lb for the first time since mid-May on Wednesday ahead of a key US government crop report that may forecast lower output from India, the world's second-largest producer, due to the weak and delayed monsoon. The benchmark December cotton contract on ICE Futures US rose 0.80 percent to settle at 76 cents per lb, just 0.30 cent shy of its intraday high.
The following deals were reported: 1400 bales of cotton from Shahdad Pur sold at Rs 5775-5800, 1200 bales of cotton from Sanghar at Rs 5775-5800, 1000 bales of cotton from Tando Adam at Rs 5775-5800, 1000 bales of cotton from Mir Pur Khas at Rs 5,775-5,800, 600 bales of cotton from Hyderabad at Rs 5775-5800, 400 bales of cotton from Kotri at Rs 5775-5800, 1000 bales of cotton from Burewala at Rs 5750-5800, 200 bales of cotton from Vehari at Rs 5800, 400 bales of cotton from Hasil Pur at Rs 5800-5850, 200 bales of cotton from Gajjo Mandi at Rs 5800, 200 bales of cotton from Machi Wal at Rs 5800, 1000 bales of cotton from Bahawal Pur at Rs 5800, 800 bales of cotton from Haroonabad at Rs 5800-5850, 400 bales of cotton from Sahiwal at Rs 5800, 200 bales of cotton from Sadiqabad at Rs 5800, 200 bales of cotton from Multan at Rs 5800 and 200 bales of cotton from Shujabad at Rs 5800.
===========================================================================
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 08 08.2012
===========================================================================
37.324 Kgs 5,700 130 5,855 5,855 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,109 130 6,264 6,265 NIL
===========================================================================