Prices were firm on the cotton market on Friday amid slow trading activity, dealers said. The official spot rate was unchanged at Rs 6,450. In the ready business, around 2,000 bales of cotton were sold between Rs 6250-7000, while prices for seed cotton per 40 kg from Sindh were at Rs 3100-3200, they said.
Market sources said that many trading centres were closed to mourn the MQM workers' abduction and killings. Most of the deals reported from Punjab side amid rains in cotton belt. Prices showed firmness as buyers were keeping a watch over the demand and supply. NY cotton futures maintained firm trend and that was a factor, which was giving a boost to rates, dealer said.
Cotton analyst, Naseem Usman said in India prices held the present levels as weaker Indian rupee was attracting buyers and it was signalling that prices might not fall sharply in the coming days. Indian cotton demand likely to improve and may push the demand up on the local market.
Commenting on the future direction on the local market, he said it was expected that the new government's budgetary measures for 2013-14 would put the economy back on track, the decisions were hard and the nation have to face many challenges to safe their future. According to the Reuters, Cotton futures extended gains to a more than two-month high on Thursday on trade short-covering and continued investor buying following US government reports indicating continued strong demand and tightening US supplies, dealers said.
The most-active December cotton contract on ICE Futures US closed up 1.08 cents, or 1.2 percent, at 89.15 cents a lb, after reaching 89.28 cents, the highest level since early April. Trading volumes were heavy at about 55,000 contracts and more than double the 30-day average of about 24,000 contracts, preliminary Thomson Reuters data showed. A sense that US supplies are tightening was driving the short-covering, compounded by talk of large purchases of US cotton, dealers said. The following deals reported: 100 bales of cotton from Saleh Pat sold at Rs 6250, 200 bales from Dharki at Rs 6800, 1000 bales from Gojra at Rs 6250, 200 bales from Ahmed Pur at Rs 5300 and 400 bales from Jahanian at Rs 7000, 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 13.06.2013
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37.324 Kgs 6,450 155 6,605 6,605 NIL
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Equivalent
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40 Kgs 6,912 155 7,067 7,067 NIL
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