Upward trend persists on cotton market

Reports appeared that China is expected to harvest 6.9 million tonnes of cotton this year

October 11, 2012: Rising trend persisted on the cotton market on Wednesday amid slight fall in trading activity, in the meantime, it is most likely that supply position may ease, which expectedly bring down rates, dealers said.

Official spot rate extended overnight gains, picking up more Rs 75 to Rs 5,575, they said. In the ready business, around 18,000 bales of cotton changed hands between Rs 5500-5850, they said. The prices of seed cotton, extended overnight gains, picking up the Punjab and Sindh prices were at Rs 2500-2650, they said.

According to some analysts world traders are facing uncertainties in the wake of economic slowed down. They said that recently, closer of factories, due to shortage of seed cotton and falling trend in exports which was hurting their cost of downing business. How far, the growers or ginners can hold the unsold stock, as a result of rise in phutti arrivals, selling pressure is likely in the coming days amid rising concerns about slowing growth in China.

Other adding factor is increase in fears after the poor performance of the economic countries by the rating agencies, the International Monetary Fund (IMF) and the Word Bank. In India, cotton spot prices are expected to remain stable this week after four flat days as higher supplies from the new season crop are likely to meet demand from textile makers.

Reports appeared that China is expected to harvest 6.9 million tonnes of cotton this year, a decline of 4.2 percent from a year ago, due to a smaller sowing area, an official from the country’s top planning agency said in remarks published on Tuesday. According to the Reuters, the NY cotton futures settled quietly higher on Tuesday, remaining range-bound with the market consolidating as the fibre awaited new fundamentals after last week’s fall to a two-month low.

New York cotton for December delivery crept up 0.06 cent, or 0.1 percent, to settle at 71.84 cents per lb on ICE Futures US The benchmark contract traded in a range from 71.41-72.53 cents, finding resistance just above the 100-day moving average at 72.39 cents.

The following deals reported: 2000 bales of cotton from Shahdad Pur at Rs 5600, 2000 bales from Sanghar at Rs 5550-5600, 1200 bales from Tando Adam at Rs 5600, 2000 bales from Mir Pur Khas at Rs 5550-5600, 1000 bales from Khair Pur at Rs 5800, 1000 bales from Upper Sindh at Rs 5800-5850, 200 bales from Chaniot at Rs 5500, 400 bales from Vehari at Rs 5500-5600, 1000 bales from Khanewal at Rs 5600-5700, 1000 bales from Pak Pattan at Rs 5575-5650, 200 bales from Chichawatni at Rs 5600, 600 bales from Bakkahar at Rs 5625-5700, 400 bales from Hasil Pur at Rs 5650, 1600 bales from Burewala at Rs 5700, 200 bales from Gaggo Mandi at Rs 5700, 400 bales from Rahim Yar Khan at Rs 5700, 200 bales from Fazil Pur at Rs 5750, 400 bales from Fort Abbas at Rs 5700-5800, 400 bales from Khichi Wala at Rs 5800, 600 bales from Faqir Wali at Rs 5800-5850, 800 bales from Haroonabad at Rs 5800-5850, 600 bales from Rajan Pur at Rs 5800 and 800 bales from Mian Wali at Rs 5800-5850, they said.


The KCA Official Spot Rate for Local Dealings in Pak Rupees
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
For      	  Price     Ex-Karachi  Ex. KHI. As   Ex-Karachion 09.10.2012
37.324 Kgs          5,575      155          5,730        5,655          +75
40 Kgs              5,975      155          6,130        6,049          +81



Courtesy: BR

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