Trade activity falls on cotton market
February 09, 2013
Trading activity came down on the cotton market on Friday as the ginners were not ready to bring down rates, dealers said. The official spot price was unchanged at Rs 6,100, dealers said. Seed cotton prices in Sindh did not show any change, sustaining overnight rates at Rs 2,200-2,800 and in the Punjab rates were at Rs 2,300-3,000, they said.
In the ready business, some 6,000 bales of cotton changed hands between Rs 5,700-6,400, they said. Some analysts were of the opinion that mills were not able to buy at the higher rate due to financial problem. Import of cotton and nearly two-week holidays on account of Lunar Year are major factors behind the slump in business on cotton market, cotton analyst, Naseem Usman said.
It was understood that there was no sufficient stock of fine stock, which was propelling ginners to hold back the stuff hopefully, that might improve their earnings in near future, other analysts said. According to Reuters, US cotton futures fell for a third time this week to a one-week low on Thursday, as a second week of lower US weekly export sales data heightened concerns that high prices have begun to deter demand from China, the world’s largest consumer.
The most-active March cotton contract on ICE Futures US settled down 0.32 cent, or 0.4 percent, at 81.40 cents per pound, the lowest price since January 28. The loss on Thursday, cotton’s third down day during the week, put the fibre on track for its first weekly loss in six weeks. Prices have fallen about two percent since Friday’s close. The flagging momentum comes after cotton reached a seven-month high of 84 cents on January 24 and rallied 10.5 percent in January, outperforming the rest of the Thomson Reuters-Jefferies CRB index.
The following deals were reported: 400 bales from Khan Pur (BCI) at Rs 6,300, 400 bales from Chichawatni at Rs 5,700-6,000, same figure from Bahawalpur at Rs 5,800, 800 bales from Burewala at 5,800-6,000, 400 bales from Vahari at Rs 5,800-5,960, 600 bales from Gojra at Rs 5,960, 2,000 bales from Rahim Yar Khan at Rs 5,950-6,3000, 200 bales from Haroonabad at Rs 6,050 and 800 bales from Mian Wali at Rs 6400, they said.
The KCA Official Spot Rate for Local Dealings in Pak Rupees
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32″
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Rate Ex-Gin Upcountry Spot Rate Spot Rate DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 07.02.2013
37.324 Kgs 6,100 155 6,255 6,255 NIL
40 Kgs 6,537 155 6,692 6,692 NIL
Courtesy: Business Recorder