A kind of panic buying was witnessed on the cotton market on Saturday on hovering fears of decline in supply of seed cotton, dealers said. The official spot rate was unchanged at Rs 6,600, they said. In ready session, over 35,000 bales of cotton changed hands between Rs 6400-7000, they said.
In Sindh, seed cotton prices were same at Rs 2700-3200, in the Punjab, rates also held the overnight levels at Rs 2700-3300, as per 40 kg, they said. According to some analysts, short supply of seed cotton created an uncertainty among the buyers.
Cotton analyst, Naseem Usman observed that trading activity improved after an alarming situation in Maharashtra, one of the leading cotton growing states of India, where crop damaged due to pest attack. As a whole, prices may maintain stable trend as a result of strong demand by spinners, experts said.
On the other hand, the Plant Protection Department (PPD) has stated that No Objection Certificate (NOC) issued to spinners for import of cotton from India, other analysts said. Dollar's sudden rise in the inter-bank market, keeping traders jitter, most of them were trying to lay hand as much as they can, they observed.
Adds Reuters: ICE cotton fell on Friday after hitting an over seven-month high earlier in the session as investors took profits and as the US dollar firmed. Cotton contracts for March settled down 0.51 cent, or 0.69 percent, at 73.72 cents per lb. It traded within a range of 73.62 and 74.28 cents a lb, its highest since May 4.
Total futures market volume fell by 3,932 to 31,997 lots. Data showed total open interest gained 1,540 to 251,409 contracts in the previous session. The following deals reported: 4000 bales of cotton from Dherki at Rs 7000, 2400 bales from Ghotki at Rs 6900-7000, 1200 bales from Khairpur at Rs 6450/6500, 1000 bales from Rohri at Rs 6500/6600, 6800 bales from Rahim Yar Khan at Rs 6900/7000, 6500 bales from Khanpur at Rs 6950, 2400 bales from Sadiqabad at Rs 6900/7000, 1400 bales from Kot Sabzal at Rs 6950/7000, 400 bales from Liaquatpur at Rs 6850, 200 bales from Hasilpur at Rs 6800, 400 bales from MP Dewan at Rs 6750, 400 bales from Rajanpur at Rs 6700, 800 bales from Fort Abbas at Rs 6500 4200 bales from Haroonabad at Rs 6400-6500, 1000 bales from Marrot at Rs 6500, 1400 bales from Yazman Mandi at Rs 6475 and 1800 bales from Chistian at Rs 6425, 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 1-1/16"
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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 08-11-2017
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37.324 kg 6,600 145 6,745 6,745 NIL
Equivalent
40 kgs 7,073 155 7,228 7,228 NIL
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