Prices up on slow supply of phutti

Prices up

October 17, 2012: A kind of firmness again witnessed on the cotton market on Tuesday as prices started going up amid slow supply of seedcotton, experts said. Official spot rate was higher by Rs 50 to Rs 5,550, they said. In the ready business, rates were higher as the ginners preferring to hold back the fine quality to gain profit, dealers said. Approximately, 14,000 bales of cotton changed hands between Rs 5400-5800, they said.

In both the Punjab and Sindh prices of seed cotton of fine type maintained overnight gains, picking up Rs 50 to Rs 2750, while the inferior variety was unchanged at Rs 2400, they said. Cotton analyst Naseem Usman said that the mills were willing to cover the pre-Eid holiday buying, but most of the ginners were not ready to oblige them, apparently because of tight supply of phutti.

Despite low demand by the foreign and local buyers, the cotton traders are not sure about the size of the crop, in the meantime, it is expected that the Cotton Crop Assessment Committee (CCAC) meeting, which is likely in the first week of November, may estimate about the production, he said.

The overall situation of the world economy, not in a good shape, keeping the businessmen and traders in grip of uncertainties, brokers said and adding that no one is definite about the prospects of business. According to the Reuters, cotton futures in New York rose again on Monday as speculative buying helped the market rebound from a loss last week that was triggered by the bleakest US government crop report on cotton in decades. Cotton’s most actively traded contract on ICE Futures US, December, settled at 72.34 cents a pound, up 1.3 percent on the day. It was the second day in a row that the market was up; it finished 1 percent higher on Friday.

The following deals reported: 1600 bales of cotton from Shahdad Pur at Rs 5550-5600, 400 bales from Tando Adam at Rs 5600, 600 bales from Sanghar at Rs 5500, 800 bales from Mir Pur Khas at Rs 5500, 600 bales from Khair Pur at Rs 5750, 1000 bales from Upper Sindh at Rs 5750-5800, 400 bales from Chichawatni at Rs 5400-5450, 600 bales from Khanewal at Rs 5400-5600, 400 bales from Multan at Rs 5400, 200 bales from Mian Chano at Rs 5400, 400 bales from Hasil Pur at Rs 5400-5450, 1000 bales from Bahawal pur at Rs 5400-5500, 1000 bales from Vehari at Rs 5450-5500, 200 bales from Kacha Kho at Rs 5500, 200 bales from Dera Ghazi Khan at Rs 5500, 200 bales from Basti Malook at Rs 5500, 400 bales from Burewala at Rs 5550/5600, 400 bales from Maroot at Rs 5600, 1400 bales from Rajan Pur at Rs 5650-5700, 800 bales from Mian Wali at Rs 5650-5700, 200 bales from Haroonabad at Rs 5650 and 800 bales from Fazil Pur at Rs 5700, they said.

 

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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 15.10.2012
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37.324 Kgs          5,550      155          5,705        5,655          +50
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Equivalent
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40 Kgs              5,948      155          6,103        6,049          +54
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Courtesy: BR

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