Trading activity came down on the cotton market on Friday as leading mills and spinners hoping for decline in rates, dealers said. The official spot rate lost further Rs 50 to Rs 6550, they said. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 1800-2800, in Punjab rates also showed no change at Rs 2950-2600, dealers said. In the ready session, around 23,000 bales of cotton changed hands between Rs 6500-6700, they said.
The main factor, which appeared is less buying interest in fresh deals by the mills and ginners, dealers said. Most of them were hoping that prices to fall due to steady phutti arrivals, they added. Cotton analyst, Naseem Usman said that comfortable supply and falling demand by importing countries were the main factor behind the easier trend in the rates.
Besides, India is likely to export 9 million bales of the fibre in 2013/14, down 13.5 percent from last year, as demand is subdued from top buyer China, a government official said. According to the Reuters, NY Cotton futures edged down on Thursday, marking their 10 down session, bringing their monthly decline to 11.5 percent under pressure from harvests and investor liquidation.
The most-active December cotton contract on ICE Futures US closed down 0.66 cent, or 0.8 percent, to settle at 77.18 cents a lb after setting a nine-month low of 77.11 cents a lb. The spot contract finished October with its biggest monthly decline since May 2012. For the day, cotton gave back all the gains seen earlier in the session after a US government export report exceeded expectations.
The following deals reported as 600 bales of cotton from Nawab Shah at Rs 6500, 1000 bales from Khairpur at Rs 6550, 1000 bales from Upper Sindh at Rs 6550, 1000 bales from Khairpur (BCI) at Rs 6625-6650, 1000 bales from Upper Sindh (BCI) at Rs 6625-6650, 1200 bales from Khanewal at Rs 6550, 400 bales from Jhang at Rs 6550, 400 bales from Pul Bagar at Rs 6550, 400 bales from Hasilpur at Rs 6550, 400 bales from Daran Wala at Rs 6550, 800 bales from Bakhar at Rs 6600, 400 bales from Bahawalpur at Rs 6600, 400 bales from Shujabad at Rs 6600, 600 bales from Tonsa Sharif at Rs 6600-6650, 400 bales from Lodhran at Rs 6600, 3000 bales from Haroonabad at Rs 6600, 400 bales from Chistian at Rs 6600, 1200 bales from Noorpur at Rs 6600, 1400 bales from Faqirwali at Rs 6600, 400 bales from Bahawal Nagar at Rs 6600, 600 bales from Rajanpur at Rs 6650, 1000 bales from Sadiqabad at Rs 6650, 1000 bales from Khanpur at Rs 6650, 1200 bales from Rahim Yar Khan at Rs 6650, 2800 bales from Mianwali at Rs 6650-6700 and 400 bales from Mohammadpur Dewan at Rs 6700, they added.
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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 31.10.2013
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37.324 Kgs 6,550 155 6,705 6,755 -50
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Equivalent
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40 Kgs 7,020 155 7,175 7,228 -53
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