Cotton market: spot rate falls amid slow trade

April 17, 2013

Cotton Market
Cotton Market

Prices dropped on the cotton market on Tuesday amid slow trading activity following the steep fall in the world commodities, dealers said. The official spot rate was lower by Rs 100 to Rs 6,700, they said. Rates of seed cotton in Sindh were unchanged at Rs 1800 and Rs 2,400, while in Punjab prices showed no change at Rs 1,800 and Rs 2,500, they said.

In the ready business, nearly 3,000 bales of cotton changed hands between Rs 6,400 and Rs 6,800, they said. Experts were of the view that most of the mills were on the sideline due to uncertainties about the falling trend in the world commodities. Cotton Analyst Naseem Usman said that slide in the global commodity prices to influence the local prices.

It is observed that weak economy was lessening purchasing power of people, while austerity plan in several countries of the world was propelling people to cut in luxurious life-style, they said. Commodity markets were rattled by official data which shows that economic growth in China slowed in the first three months of 2013 to 7.7 percent from 7.9 percent in the final quarter of last year.

According to the Reuters, the ICE cotton futures posted their steepest daily loss in nearly a month on Monday, and many other commodities dropped sharply, as weaker-than-expected economic data out of China, the world’s top textile market, increased doubts about the global economy.

The most-active July cotton contract on ICE Futures US dropped 1.5 cents, or 1.7 percent, to settle at 86.12 cents per pound, posting its largest daily loss since March 20. The Thomson Reuters-Jefferies CRB index registered its largest one-day decline since December 2011 as gold had its two-day drop since 1983, brent oil touched its lowest price since July, and grain prices fell.

The following deals were reported: 200 bales of cotton from Nushero Feroz at Rs 6,700, same figure from Mehran Pur at the same level, same figure from Bahawal Pur at Rs 6,400, 200 paisa from Multan at Rs 6,425, 1,800 bales from Mian Wali at Rs 6600-6650 and 100 bales from Yazman Mandi at Rs 6,800, 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 15.04.2013
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37.324 Kgs          6,700      155          6,855        6,955         -100
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Equivalent
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40 Kgs              7,180      155          7,335        7,443         -108
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Source Business Recorder

Published: Zarai Media Team

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