Prices may fall as phutti arrivals pick up pace

July 19, 2013

Prices up
Prices up

Prices improved on the cotton market on Thursday but as a result of increase in seed cotton arrivals, rates may come down in the near future, dealers said. “The official spot rate was unchanged at Rs 6,700. In the ready business, nearly 9,000 bales of cotton changed hands between Rs 6725-6800. Prices of seed cotton per 40 kg in Sindh and Punjab remained at Rs 3100-3150,” dealers said.

According to market sources, monsoon rains stopped in lower Sindh, which caused smooth supply of seed cotton. Cotton analyst Naseem Usman said prices were stable for the last several weeks, but after the less monsoon rains, Phutti arrivals improved gradually and mills adopted wait-and-see attitude, which might bring down prices. Other brokers said that fall in world cotton production likely to help prices to retain present levels.

According to the Reuters, ICE cotton grinded lower for a second session on Wednesday and slid to the lowest level in more than two weeks, under pressure from a lack of mill demand, technical weakness, and rains in Texas, the top producing state in the world’s leading exporter. The most-active December cotton contract on ICE Futures US closed down 0.7 cent, or 0.8 percent, at 83.67 cents a lb, after touching 83.58 cents, the weakest level since July 1. Trading volume totalled about 9,700 lots, well off the 30-day average of about 26,700 lots, preliminary Thomson Reuters data showed.

The following deals were reported as 1,200 bales of cotton from Shahdad Pur at Rs 6725-6800, 2,000 bales of cotton from Sanghar at Rs 6725-6800, 400 bales of cotton from Khipro at Rs 6725-6750, 1,000 bales from Mir Pur Khas at Rs 6750-6800, 1,400 bales from Tando Adam at Rs 6750-6800, 200 bales from Gojra at Rs 6700, 400 bales from Mongi Bangla at Rs 6700, 400 bales from Chichawatni at Rs 6750, 300 bales from Burewala at Rs 6750-6800, 200 bales from Haroonabad at Rs 6775 and 1200 bales from Khanewal at Rs 6800, they added.

 

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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 17.07.2013
===========================================================================
37.324 Kgs         6,700      155         6,855       6,855             NIL
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Equivalent
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40 Kgs             7,180      155         7,335       7,335             NIL
===========================================================================

Courtesy Business Recorder

Published in ZaraiMedia.com

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