Prices maintain upward momentum

March 08, 2013

Cotton Prices Up
Cotton Prices Up

An upward trend persisted on the cotton market on Thursday amid a tug-of-war between buyers and sellers over prices, dealers said. This was second appreciation in the rates during the week as the official spot rate went up by Rs 100 to Rs 6,600, thus showing an increase of Rs 125 in the week, dealers said.

Seed cotton in Sindh were higher by Rs 100 to Rs 2,400-3,100 and in Punjab rate of low variety gained Rs 100 to 2,300 and better type jumped by Rs 300 to Rs 3,300, they said. Trading activity improved as 22,000 bales of cotton changed hands between Rs 5,900 and Rs 7,200, they said.

The local prices are on track of international market, cotton analyst Naseem Usman said, adding that present trend might maintain in the coming days. Some analysts have started guessing that cotton production may not show an improvement in the coming season, that factor also caused an increase in the rates of cotton, dealers said.

According to the Reuters, NY Cotton prices gained for a seventh straight session on Wednesday, touching a 10-month high, as expectations of strong demand and mill buying supported a recent rally that has been fuelled by speculators’ bullish investment. The most-active May cotton contract on ICE Futures US rose 0.26 cent, or 0.3 percent, to settle at 87.24 cents per pound after earlier climbing to 87.59 cents, the highest level since May 7, 2012.

The following deals were reported: 1,000 bales from Mir Pur Khas at Rs 5,900, 554 bales from Tando Adam at Rs 5,900/5,950, 194 bales from Shahdad Pur at Rs 5,975, 600 bales from Saleh Pat at Rs 6,800, 1,500 bales from Burewala at Rs 6,375, 600 bales from Faqir Wali at Rs 6,390/6,400, 1,300 bales from Haroonabad at Rs 6,390-7,000, 464 bales from Chistian at Rs 6,400, 6,400 bales from Yazman Mandi at Rs 6,600/6,800, 1,800 bales from Bahawal Pur at Rs 6,700-6,800, 600 bales from Shujabad at Rs 6,850, 1,200 bales from Mian Wali at Rs 6,900, 400 bales from Vehari at Rs 6,900, 1,400 bales from Rahim Yar Khan at Rs 7,000, 3,000 bales from Khan Pur at Rs 7,000, 600 bales from Jalal Pur at Rs 7,000, 400 bales from Rajan Pur at Rs 7,000, 400 bales from Mian Chano (Condition) at Rs 7,200, 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 06.03.2013
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37.324 Kgs         6,600      155         6,755       6,655            +100
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Equivalent
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40 Kgs             7,073      155         7,228       7,121            +107
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Cotton Price in Pakistan

Courtesy: Business Recorder

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