Slight improvement in activity on cotton market

April 03, 2013

Cotton Spot Rate
Cotton Spot Rate

Slight improvement was witnessed on the cotton market on Tuesday as needy mills continued buying to meet the urgent needs, dealers said. The official spot rate was unchanged at Rs 6,900, they said. Rates of seed cotton in Sindh were unchanged at Rs 2,200 and 2,800, and in Punjab prices were also inert at Rs 2,200-3,100, they said. In the ready business, around 4,000 bales of cotton changed hands between Rs 5,850 and Rs 7,000, they said.

Some brokers said that millers were in the market to meet the urgent needs but it looks that prices depicted fall gradually in the coming days. Cotton Analyst Naseem Usman said that demand was also coming down for some textile products, which might push down the foreign exchange earning in the coming days. Two percent cut in textile sector might improve the trade activity in days to come, other brokers said.

Rains in the country were good for the change and there was no fear for any damage, as crops were not in the open sky, they said, adding nearly seven lakh (0.7 million) bales of unsold stock were at ginneries. According to the NY cotton, prices settled lower for a second straight session on Monday, weighed down by sinking grains markets and as speculative investors continued to book profits from the market’s longest bull-run in two years.

The most-active May cotton contract on ICE Futures US slid 1.2 percent to 87.39 cents per lb, its biggest one-day fall since March 20. Traders also digested news that China, the world’s biggest consumer, kept sales volume in its auction unchanged, defying expectations that it could ramp up sales to help ease tight domestic supplies. The following deals were reported: 100 bales of cotton from Chichawatni at Rs 6,800, 400 bales from Layyah at Rs 6,500 and 3,400 bales of cotton from Sadiqabad at Rs 700, 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    Difference
For      	  Price    Ex-Karachi  Ex. KHI. As   Ex-Karachion 01.04.2013
===========================================================================
37.324 Kgs        6,900       155        7,055         7,055            NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs            7,395       155        7,550         7,550            NIL
===========================================================================

Business Recorder

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More