Slight improvement in trade activity on cotton market

January 03, 2013

Cotton Market
Cotton Market

Slight improvement was witnessed on the cotton market on Wednesday as most of the ginners held back unsold stock on expectations of increase in rates in days to come, dealers said. Official spot rate was unchanged at Rs 6000, they said. Prices of cottonseed (phutti) in Sindh at Rs 2300-2700 and in Punjab rates were at Rs 2400-2800, they said. In ready business, above 10,000 bales of cotton finalised between Rs 5725 and Rs 6100, they said.

According to the market sources, mills were interested in fresh purchasing but the ginners were not ready to adopt flexibility in expectations of rise in the rates. They said that it is most probable that the ginners may lower the asking prices because of issuance of fresh arrivals of phutti in the Pakistan Cotton Ginners Association (PCGA) within a couple of days.

Business volume may lift from current level after the resumption of activity in the NY cotton market, cotton analyst Naseem Usman said. According to the Reuters, the cotton spot prices in India, are likely to remain steady this week because of buying by yarn makers and on an expected fall in supplies that could outweigh weak export demand following softer global prices.

Daily supplies in spot markets rose last week to 195,000-200,000 bales of 170 kg each from 170,000-180,000 bales in the previous week. However, buying by yarn makers, who are expecting a 20 percent rise in yarn exports in the current fiscal, supported prices.

The following deals were reported: 400 bales of cotton from Sadiqabad at Rs 5725, 2000 bales from Khairpur at Rs 6000, 1000 bales from Upper Sindh (BCI) at Rs 6100, 400 bales from Haroonabad at Rs 5900, 400 bales from Hasilpur at Rs 5900, 400 bales from Chistian at Rs 5900, 400 bales from Arif Wala at Rs 5900, 400 bales from Kabir Wala at Rs 5950, 400 bales from Khanewal at Rs 6000, 1200 bales from Rahimyar Khan at Rs 6000-6100, 1400 bales from Rajanpur at Rs 6000-6100, 400 bales from Burewala at Rs 6050 and 400 bales from Mian Wali at Rs 6100, 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 01.01.2013
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37.324 Kgs          6,000      155          6,155        6,155          NIL
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Equivalent
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40 Kgs              6,430      155          6,585        6,585          NIL
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Courtesy: BR

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