Cotton market: trade activity improves on buying by exporters

January 23, 2013

Cotton Market
Cotton Market

Trade activity improved on the cotton market on buying by exporters dealers said on Tuesday. Official spot rate was unchanged at Rs 5950, they said. Prices of seed cotton (phutti) in both Sindh and Punjab were unchanged at Rs 1800 and good varieties were also the same at Rs 2700, they said. In ready business, over 17,000 bales of cotton changed hands between Rs 5,100 and Rs 6,150, they said.

Market sources said that a few number of exporters entered the arena to make fresh deals as importing countries were interested in purchasing of inferior quality and it may increase business activity in the coming days. Commenting on the present trend in the market, cotton analyst Naseem Usman said that Indian traders keen to buy Pak cotton due to lower prices as compared to the local rates. So, it seems that the ginners have to bring down prices further in days to come.

Local mills were trying to cover the forward deals as much as they can, but the main thing is ginners were not ready to oblige them, as they are already facing financial loss due to fall in seed cotton rates, he added. According to the Reuters, cotton spot prices in India, are likely to fall during the current week on surging supplies in spot markets amid lacklustre demand from textile makers, though buying by exporters could limit the downtrend.

The following deals were reported: 200 bales from Mirpur Khas at Rs 5100, 2400 bales from Sanghar (Two month Credit) at Rs 5950, 1200 bales from Upper Sindh (BCI) at Rs 6075-6100, 200 bales from Burewala (Low Quality) at Rs 5050, 400 bales from Chichawatni at Rs 5700, 400 bales from Rajhana at Rs 5700, 400 bales from Ahmed Pur at Rs 5700, 1000 bales from Bahawal Pur at Rs 5750, 600 bales from Khichi Wala at Rs 5800, 1200 bales from Haroonabad at Rs 5800/6000, 2600 bales from Mian Wali at Rs 6000/6100, 400 bales from Kabir Wali at Rs 6100, 400 bales from Rajan Pur at Rs 6100, 400 bales from Sadiqabad at Rs 6100, 400 bales from Burewala at Rs 6100, 2000 bales from Khanewal at Rs 6100, 1000 bales from Khan Pur at Rs 6150, 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 21.01.2013
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37.324 Kgs          5,950      155          6,105        6,105          NIL
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Equivalent
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40 Kgs              6,377      155          6,532        6,532          NIL
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Courtesy: BR

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