Spot rate slightly up amid modest trading on cotton market

November 17, 2012

 

Cotton Market

Trading activity slowed down on the cotton market Friday in the absence of fresh demand by mills and spinners, dealers said. Official spot rate inched up by Rs 25 to Rs 5,925, they said. Approximately, 16,000 bales of cotton changed hands between Rs 5700-6200, they said.

Prices of seedcotton (phutti) in Sindh were at Rs 2650-2850, in Punjab rates were at Rs 2600-2950, they said. In the absences of fresh leads, the mills and spinners did not show so much interest in the fresh purchasing of cotton, leading experts said. Cotton analyst, Naseem Usman said that mills were sidelines ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, which most likely to depict a rise in phutti arrival figures, so the mills preferred to adopt a wait-and-see attitude in expectations of fall in the prices.

Other brokers said that many mills are importing cotton from other countries due to low rates and better quality. According to the Reuters, US cotton futures shot to three-week highs on Thursday for their largest daily gain in four weeks on an unexpected flurry of buying for prompt delivery from textile mills.

The most-active December cotton contract on ICE Futures US settled up 2.33 cents, 3.25 percent, at 73.96 cents with volumes significantly higher than average. It hit an intraday high of 74.63 cents per lb shortly before settlement. The market swung into an inversion, with the nearby contract higher than the March, fuelling the perception that prompt demand may be outpacing supplies. December’s premium was 1.24 cents. Certified stocks rose to 25,801 480-lb bales from 22,887, according to ICE data, although that level is still historically very low. Another 14,880 bales are awaiting review by the US Department of Agriculture.

Following deals reported: 800 bales of cotton from Shahdad Pur 700-5800, 1000 bales from Sanghar at Rs 5700-5800, 1000 bales from Khair Pur at Rs 6000-61005, 400 bales from Chistian at Rs 5925, 600 bales from Hasil Pur at Rs 5935-6050, 200 bales from Jahanian at Rs 5950, 1000 bales from Chichawatni at Rs 5950-6050, 400 bales from Yazman Mandi at Rs 6000, 600 Shujabad at Rs 6000, 400 bales from Sadiqabad at Rs 6000, 1200 bales from Bakhar at Rs 6000/6050, 200 bales from Jan pur at Rs 6050, 200 bales from liaquat pur at Rs 6050, 500 bales from Haroonabad at Rs 6050, 800 bales from Tonsa sharif at Rs 6050-6100, 800 bales from Bahawal Pur at Rs 6100, 400 bales from Noor Pur at Rs 6100, 400 bales from Faqir Wali at Rs 6100, 400 bales from Khanewal at Rs 6100, 200 bales from Layyah at Rs 6100, 800 bales from Burewala at Rs 6100, 2400 bales from Rajan Pur at Rs 6150, 400 bales from Jam Pur at Rs 6150, 600 bales from Fazil Pur at Rs 6150, 1600 bales from Mian wali at Rs 6175-6200, 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 15.11.2012
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37.324 Kgs          5,925      155          6,080        6,055          +25
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Equivalent
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40 Kgs              6,350      155          6,505        6,478          +27
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Courtesy: BR

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