Prices of fine variety went up on the cotton market on Friday as the ginners were not keen to lower asking prices mainly because of diminishing unsold stock, dealers said. The official spot price was unchanged at 6,250, dealers said. Seed cotton prices in Sindh were inert at Rs 2,200-2,800 and in Punjab the rates were at Rs 2,300-3,000, they said. In the ready business, nearly 12,000 bales of cotton changed hand between Rs 4,700-6,600, they said.
Cotton analyst, Naseem Usman said that prices were firm due to shortage of fine type and nearly 10-11 lac of unsold stock is with the ginners and nearly half quantity is best, which is not enough to meet demand by mills and spinners. So, market players expecting prices may hit Rs 7,000 mark due to falling unsold stock and partly because of rising trend in the dollar's value versus the rupee, other analysts said. They said that Phutti arrival figure by the Pakistan Cotton Ginners Association (PCGA) fortnightly report is likely next week, till now some 12.6 million bales arrived into the ginneries. Further improvement in activity was likely after resumption of business in China after Lunar Year holiday, they said.
Fresh rains in Sindh and Punjab brought a pleasant change. In the meantime, it may not bring any change in the present direction in price line, they said. According to Reuters, the US cotton prices fell for a second day on Wednesday, due to market consolidation and an absence of buyers in China, the world's largest consumer, during the New Year holiday.
The most-active May cotton contract on ICE Futures US dropped 0.89 cent, or 1.1 percent, to settle at 82.21 cents per lb. Earlier in the session, it fell as low as 81.35 cents a lb, the benchmark contract's lowest intraday price since January 28.
The following deals were reported: 1,200 bales from Mian Chano (Low Quality) at Rs 4,700, 200 bales from Tonsa Sharif at Rs 5,750, 200 Arif Wala at Rs 5,800, 600 bales from Chichawatni at Rs 5,900-5,950, 800 bales from Haroonabad at Rs 5,950-6,150, 400 bales from Faqir Wali at Rs 5,950, 200 bales from Jahanian at Rs 6,000, 400 bales from Kasso Wal at Rs 6,000, 1,200 bales from Burewala at Rs 6,100, 400 bales from Garh Mahraja at Rs 6,125, 200 bales from Bakhar 6,150, 400 bales from Shujabad at Rs 6,200, 1,400 bales from Rajan Pur at Rs 6,300, 400 bales from Khanewal at Rs 6,350, 2000 bales from Murid Wala at Rs 6,500, 1,000 bales from Rahim Yar Khan at Rs 6,500 and 1,000 bales from Kabir Wala at Rs 6,600, they 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 14.02.2013
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37.324 Kgs 6,250 155 6,405 6,405 NIL
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Equivalent
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40 Kgs 6,698 155 6,853 6,853 NIL
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