As a result of tight supply because of continued rains in the country prices went up on the cotton market on Wednesday, dealers said. Official spot rate was unchanged at Rs 5650, they said. In the ready business, over 4000 bales of cotton changed hands between Rs 5600-5800, they said. Prices of seedcotton low quality in both Sindh and the Punjab were down by Rs 200 to Rs 1800 while the best type was inert at Rs 2400, they added.
Market sources said that continued rains in the country interrupted the picking operation, causing a slight rise in the prices. They said that further rainfall in the cotton belt likely to push rates higher. Naseem Usman, cotton analyst said that business activity may slow down in the coming days as a result of tug-of-war between the ginners and the mills. It is obvious that on the basis of quality factor, the ginners may try to increase the asking prices, but, the mills may not oblige them in the absence of foreign demand, he added.
According to the Reuters, the US cotton futures fell on Tuesday for the second day, in thin and cautious dealing ahead of government crop data and a Federal Reserve policy decision, traders said. US cotton's benchmark December futures contract in New York fell 0.7 cents to close at 74.93 cents per lb, after moving between 76.28 and 74.85 cents.
The following deals reported: 400 bales of cotton from Mir Pur Khas at Rs 5700, 800 bales of cotton from Sanghar at Rs 5700, 200 bales of cotton from Bahawal Nagar at Rs 5600, 200 bales of cotton from Mongi Bangla at Rs 5700, 600 bales of cotton from Bahawal Pur at Rs 5700-5800, 200 bales of cotton from Lodhran at Rs 5700, 200 bales of cotton from Vehari at Rs 5700, 100 bales of cotton from Chichawatni at Rs 5700, 100 bales of cotton from Burewala at Rs 5700, 200 bales of cotton from Chistian at 5700, 200 bales of cotton from Khanewal at Rs 5725 and 700 bales of cotton from Mailsi at Rs 5800, dealers said.
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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 11.09.2012
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37.324 Kgs 5,650 130 5,805 5,805 NIL
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Equivalent
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40 Kgs 6,055 130 6,210 6,210 NIL
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