Cotton market: activity improves on buying by mills

April 14, 2013

Cotton Market
Cotton Market

Modest activity was seen on the cotton market on Saturday as major participants were out of arena just because of falling interest in fresh purchasing, 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, while in Punjab prices showed no change at Rs 1800 and Rs 2500, they said. In the ready business, 5,000 bales of cotton changed hands between Rs 5,900 and Rs 6,900, they said.

Dullness persisted as a number of mills were sidelines due to financial crisis the world over, besides cotton selling by China and India to their local buyers caused lack of buying interest among the cotton traders. According to the Reuters, the NY cotton futures rose on Friday during a late-session rally to post the largest daily gain in over a week, as declines to technical support triggered automatic buying, outweighing pressure from financial markets.

The most-active July cotton contract on ICE Futures US gained 0.88 cent, or one percent, to settle at 87.62 cents per pound, after earlier falling as low as 85.49 cents a lb. It was the second-month contract’s largest one-day gain since April 2. The spot May contract rose 0.92 cent, or 1.1 percent, to finish at 85.58 cents a lb. The following deals were reported: 200 bales of cotton from Khipro (conditional) at Rs 6800, same number from Sanghar (conditional) at the same rate, equal number from Salah Pak at same rate, equal figure from Mailsi at Rs 5625, 100 bales from Lodhran at Rs 6300, 200 bales from Mian Chano at the same rate, 2000 bales from Rahim Yar Khan at Rs 6800 and the same figure from Ahmed Pur at Rs 6900, 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 12.04.2013
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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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Source Business Recorder

Published: Zarai Media Team

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