Steady trend was seen on the cotton market on Saturday in process of modest trading, dealers said. Official spot rate was unchanged at Rs 5800, they said. In the ready business about 5,000 bales of cotton changed hands between Rs 5825-5900, they said.
The prices of seedcotton in Sindh were at Rs 2600-2650 and in the Punjab rates were unchanged at Rs 2600-2700, they said. Commenting on the steady trend in the market, Naseem Usman said that mills indulged in cautious buying and on the other hand, some exporters were also in the market to make little purchasing of cotton.
It is expected that the prices may show some weakness as a result of easy supply of phutti after Eid-ul-fitr holidays, other brokers said. According to the Reuters the NY cotton prices rose almost one percent on Friday as the market continued to recover from the recent sell-off after the US government's bearish supply-and-demand report.
The recent see-saw trading continued on light volumes as the market waited for news from India, the world's No 2 cotton producer, where planting has been hampered by weak monsoon rains. Traders also hope for signs that textile mills in China, the world's largest consumer, are preparing for purchases.
The benchmark December cotton contract on ICE Futures US rose 0.97 percent to 73.3 cents per lb. With just under 9,500 contracts traded, volumes were half the 250-day average and a third below the 30-day average. The following deals were reported: 1000 bales of cotton from Shahdad pur sold at Rs 5850-5900, same figure from Tando Adam at the same figure, 2000 bales of cotton from Mir Pur Khas at Rs 5850-5900 and 1000 bales of cotton from Hyderabad at the same rate.
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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 17.08.2012
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37.324 Kgs 5,800 130 5,955 5,955 NIL
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Equivalent
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40 Kgs 6,216 130 6,371 6,371 NIL
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