Cotton market: Further increase in rates on quality factor

September 06, 2013

Cotton Market
Cotton Market

Prices maintained bullish trend on the cotton market on Thursday amid rising demand by mills and spinners, dealers said. The official spot rate was unchanged at Rs 6,700, they said. Prices of seed cotton per 40 kg in Sindh maintained overnight level at Rs 3000-3100, while in Punjab rates were higher because of better variety by Rs 100-300 to Rs 2700-3000, they said.

In the ready session, prices were firm as around 12,000 bales of cotton changed hands between Rs 6700-6850, they said. Cotton analyst, Naseem Usman, commenting on the improvement in the quality of the Punjab, said mills and spinners might stay sidelines as prices were on upward march due to tight supply and good quality. The needy buyers were in the market, making deals at the present levels, but now it looked that they might adopt wait-and-see attitudes, he added. Under the circumstances, the exporters were on the sidelines just to see decline in the rates, but now it appeared some difficult because of short supply of good quality, other experts said.

According to the Reuters, the ICE cotton futures finished little changed on Wednesday after trading mixed in light volumes, with support from climbing global equities countered by pressure from lower grain markets. The most-active December cotton contract on ICE Futures US closed up 0.04 cent, or 0.05 percent, at 82.75 cents a lb.

The following deals were reported as 1,600 bales of cotton from Shahzad Pur at Rs 6800-6825, 1,400 bales from Tando Adam at Rs 6800-6825, 2200 bales from Sanghar at Rs 6775-6800, 2,000 bales from Mir Pur Khas at Rs 6775-6800, 400 bales from Kotri at Rs 6800, 600 bales from Hyderabad at Rs 6800, 800 bales from Nawab Shah at Rs 6800-6825, 600 bales from Sajrabd at Rs 6800-6825, 400 bales from Matyari at Rs 6800, 400 bales from Shah Pur Chakar at Rs 6800, 200 bales from Daur at Rs 6800, 200 bales from Kazi Ahmed at Rs 6825, 600 bales from Khair Pur at Rs 6850, 800 bales from Khanewal at Rs 6700-6775, 400 bales from Hasil Pur at Rs 6700, 200 bales from Pir Mehal at Rs 6700, 200 bales from Multan at Rs 6700, 200 bales from Chichawatni at Rs 6700, 800 bales from Burewala at Rs 6700 and 200 bales from Mingi Bangla at Rs 6700, 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 04.09.2013
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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
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Courtesy Business Recorder

Published in ZaraiMedia.com

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