Cotton market: Prices decline further

August 23, 2013

cotton-market
cotton-market

The spot rate fell sharply for the second day due to strong arrivals of seed cotton, dealers on the cotton market said on Thursday. The official spot rate dropped sharply by Rs 150 to Rs 6,600. Prices of seed cotton per 40 kg in Sindh was down by Rs 150-100 to Rs 2650-2850 and in Punjab rates were lower by Rs 200-50 to Rs 2600-2900. In the ready session, prices also slid by Rs 100 as about 12,000 bales of cotton changed hands between Rs 6600-6800, they said.

Some analysts were of the view that fall in the Indian rupee caused less buying interest among the local buyers. They also said that China might start importing yarn from India. Cotton analyst, Naseem Usman said that sharp decline in the NY cotton futures also a factor behind the low demand by local buyers.

It is most likely that selling pressure might bring down rates in the local market, he added. Other brokers said that expected rains in September might propel ginners to sell unsold stock to make space for new arrivals. According to the Reuters, cotton futures sank almost four percent on Wednesday, on track for the biggest two-day drop in more than a year, as an investor sell-off continued, with losses picking up on sell stops, dealers said. The most-active December cotton contract on ICE Futures US was down 3.45 cents, or 3.9 percent, at 85.41 cents a lb at 11:32 am EDT (1532 GMT) after falling more than four percent to 85.11 cents.

The following deals were reported as 200 bales of cotton from Khipro at Rs 6600, 600 bales from Kotri at Rs 6600-6650, 200 bales from Nooriabad at Rs 6650, 400 bales from Hyderabad at Rs 6650, 1200 bales from Tando Adam at Rs 6650-6700, 1600 bales from Mir Pur Khas at Rs 6650-6700, 2000 bales from Sanghar at Rs 6600-6700, 2000 bales from Shahdad Pur at Rs 6600-6700, 200 bales from Bahawal Pur at Rs 6650, 800 bales from Shujabad at Rs 6700, 200 bales from Tonsa Sharif at Rs 6700, 1600 bales from Burewala at Rs 6700-6800, 200 bales from Vehari at Rs 6750, 200 bales from Chichawatni at Rs 6750 and 200 bales from Hasil Pur at Rs 6800., they added.

Cotton market: 

===========================================================================
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 21.08.2013
===========================================================================
37.324 Kgs        6,600       155        6,755        6,905            -150
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Equivalent
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40 Kgs            7,073       155        7,228        7,389            -161
===========================================================================

Courtesy Business Recorder

Cotton market:

Published in ZaraiMedia.com

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