A falling trend persisted on the cotton market on Tuesday in the process of improved supply of seed cotton and declining trend in the world commodities and stocks, dealers said. The official spot rate was down by Rs 100 to Rs 4,500, dealers said. Seed cotton prices in Sindh were at Rs 2300 and Rs 2350 and in Punjab rates came down sharply to Rs 1800 and Rs 2250, they said. In the ready business, over 17,000 bales of cotton changed hands between Rs 4525 and Rs 4650, they said.
Some brokers said that prices are on decline the world over and this factor is causing a solid reason behind the fresh slide in the rates. Cotton analyst, Naseem Usman said the local currency is following the regional currencies decline. It appeared, to increase textile exports the government has to adopt the same path, because last month (July) the textile exports fell by 12 percent. Other experts said that the rupee may lose six percent versus the dollar in the near future.
Reuters adds: Benchmark cotton futures on ICE Futures US fell to their lowest levels in 1-1/2 weeks on Monday in their sharpest selloff in over a year as a collapse in China's stock markets triggered sell-offs across global equities and commodities markets.
Cotton prices had risen sharply in the past two weeks on a bullish US government crop forecast, benefiting market speculators, who held a substantial net long position in cotton as of last Tuesday, according to the most recent data. The turmoil in Chinese markets is also bearish for cotton, as China is the world's top consumer of the fibre.
December cotton on ICE Futures US settled down by 2.86 cents on Monday, a 4.3 percent loss, at 64.05 cents per pound, after falling as low as 63.93 cents a pound, its lowest level since August 12. That marked the sharpest fall for the second-month contract since May 2014.
Total futures market volume rose by 28,753 to 44,458 lots. Data showed total open interest gained 129 to 196,660 contracts in the previous session. The following deals reported: 800 bales of cotton from Kotri at Rs 4550-4600, 2400 bales from Mirpurkhas at Rs 4550-4625, 3000 bales from Sanghar at Rs 4525-2625, 1800 bales from Tando Adam at Rs 4550-4625, 1000 bales from Hyderabad at Rs 4550-4640, 2600 bales from Shahdadpur at Rs 4575-4650, 400 bales from Jhole at Rs 4600, 200 bales from Mirpur Bethero at the same rate, 400 bales from Golarchi at the same rate, same figure from Moro at Rs 4625, 400 bales from Arifwala at Rs 4550, 200 bales from Pir Mehal at the same rate, 400 bales from Gojra at the same rate, same numbr from Toba Tek Singh at Rs 4550-4600, same numbr from Mian Chano at Rs 4600, 500 bales from Chichawatni at the same rate, 600 bales from Burewala at Rs 4600-4650, 400 bales from Hasilpur at Rs 4625, 200 bales from Bakhar at Rs 4650 and same number from Vehari at the same rate, dealers said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 21.08.2015
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37.324 Kgs 4,500 135 4,635 4,735 -100
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Equivalent
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40 Kgs 4,823 145 4,968 5,075 -107
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