Cotton market: activity improves on buying by mills

April 13, 2013

کاٹن
کاٹن

Trading activity improved slightly on the cotton market on Friday as mills and spinners made buying to cover their short supply position, dealers said. The official spot rate was inert at Rs 6,800, they said. Rates of seed cotton in Sindh were unchanged at Rs 1800 and Rs 2400, in the Punjab prices showed no change at Rs 1800 and Rs 2500, they said.

In the ready business, 8000 bales of cotton changed hands between Rs 6200 and Rs 6900, they said. Market sources said there was no major change in present scenario in the meantime, some needy mills and spinners covered their short position. But, cotton analyst, Naseem Usman said that many leading buyers could not take part in trading owing to liquidity crunch.

According to the Reuters, the NY cotton futures declined on Thursday, on technically-driven selling and weaker export data, as expectations of a steep global surplus overpowered the momentum of cotton’s recent speculator-driven rally. The July cotton contract on ICE Futures US, now the most active, fell 0.74 cent, or 0.8 percent, to settle at 86.74 cents per pound.

The May spot contract closed down 0.71 cent, or 0.8 percent, at 84.66 cents a lb, after earlier approaching the previous session’s intraday high and failing to surpass technical resistance, dealers said. The May contract has fallen nearly 10 percent from a one-year high of 93.93 cents a lb touched last month, as mill buying began to slow and investors were seen taking profits following cotton’s first-quarter rally of 18-percent. The following deals were reported: 1105 bales of cotton from Obaro at Rs 6800-6900, 2700 bales from Haroonabad at Rs 6200, 1400 bales from Bahawal Pur at Rs 6300-6500, 400 bales from Burewala at Rs 6400, 400 bales from Mian Chano at Rs 6400, 2700 from Khanewal at Rs 6400-6565 and 1,000 bales from Murid Wala at Rs 6,900, 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 11.04.2013
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37.324 Kgs        6,800       155         6,955        6,955            NIL
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Equivalent
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40 Kgs            7,288       155         7,443        7,443            NIL
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