Cotton market: listless business due to rains

Cotton market

September 11, 2012: No business activity was seen on the cotton market on Monday as rains forced mills and spinners to keep on the sidelines in process of trading, dealers said. Official spot rate was unchanged at Rs 5650, they said. Prices of seedcotton in Sindh came down sharply by Rs 200 to Rs 2000-2300, they added.

Commenting on the lacklustre activity, some analysts said that due to rains in the cotton belt, flower shedding started, which till now apparently, looks may cause a slide in cotton production. On the other hand, rainfall helping in washing of virus related insects, such as Cotton Leaf Curl Virus (CLCV) and other cotton related diseases, they said.

Picking operations disrupted due to stagnant water in the field, closing down several ginning factories in the Punjab and Sindh, Naseem Usman said. It is difficult to predict about the size of total cotton production, after rains, it will clear that how much rains damaged the standing crop, he said. In the meantime, textile spinning sector is may perform better and the Readymade Garment industry may not be able to improve its performance due to bleak economic outlook the world over, they said.

They said that China has started buying of cotton yarn, which will help in the earning of country’s foreign exchange reserves According to the Reuters, China to protect it’s local farmers, kicks off the second-year of buying for its cotton stockpile, continuing its drive to protect local farmers and stabilise domestic production.

Not a single deal reported till our going to the press.

 

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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-Karachion 08.09.2012
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37.324 Kgs       5,650      130       5,805       5,805                 NIL
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Equivalent
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40 Kgs           6,055      130       6,210       6,210                 NIL
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Courtesy: BR

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