Prices showed steadier trend on the cotton market on Friday amid persistent demand by mills and spinners in the process of trading, dealers said. The official spot rate was up by Rs 50 to Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said. In the ready business, around 10,000 bales of cotton changed hands between Rs 4900-5500, they said.
According to the market sources, fresh buying interest among the spinners amid tight supply of quality lint, helped to increase the daily-intake. In the meantime, the ginners were not keen to make deals at the prevailing prices, they added. Spinners running short of cotton stocks rushed to book higher quality following the report that early cotton sowing could not be done in major parts of Punjab due to current rains, they said.
Furthermore, prices in the international market picking up, it is also a solid factor behind the recent firmness in the rates, they said. For the last several weeks, traders related to textile or cotton business were worried about the conflicting reports about the size and consumption of cotton next session.
Increase in buying emerged after reports that cultivation area may be reduced in India, which may cause sharp fall in production in the coming days. So, it looks that time is in ginners hands, despite this, moving cautiously about the situation and anticipating rise in profits in days to come, other experts said.
Reuters adds: Cotton futures rose slightly on Thursday to register the highest level in more than a week, boosted by a weaker dollar and higher commodity prices amid a positive export sales report. The front-month May contract on ICE Futures US settled up 0.04 cent, or 0.07 percent, at 58.36 cents per lb, after hitting a high of 58.89 cents. The July contract on ICE Futures US hit the highest in about a month.
The following deals finalised: 400 bales of cotton from Shahdadpur at Rs 5100, 1800 bales from Ghotki at Rs 5100-5200, 1000 bales from Rohri at Rs 5300, 719 bales from Khanewal at Rs 4900-5500, 200 bales from Faqirwali at Rs 5225, 1200 bales from Rahim Yar Khan at Rs 5250-5400, 600 bales from Sadiqabad at Rs 5300-5400, 400 bales from Mianwali at Rs 5400, 600 bales from Ahmedpur at Rs 5450, same figure from Liquatpur at the same rate and 400 bales from Rajanpur at Rs 5500, they 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 17-03-2016
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37.324 kg 5,250 135 5,385 5,335 +50
Equivalent
40 kgs 5,626 145 5,771 5,718 +53
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