Cotton market: prices slip amid improved activity

Cotton Market
Cotton Market

September 18, 2013

Prices fell modestly amid improved activity on the cotton market on Tuesday, dealers said. The official spot rate drifted lower by Rs 50 to Rs 6,850, they said. Prices of seed cotton from Sindh per 40 kg low type was inert at Rs 3100 while the best type shed Rs 50 to Rs 3200, in Punjab, inferior quality was unchanged at Rs 3000 and the best type was depreciated by Rs 50 to Rs 3200, dealers said.

In the ready session, over, 16,000 bales of cotton changed hands between Rs 6900-7050, they said. Some experts were of the view that arrivals of seed cotton are good and it could be a solid reason in behind the fresh fall in prices. Sharing the same views, cotton analyst, Naseem Usman, said that demand is not increasing from importing counties, such as China, India and Bangladesh, this is also a major reason for latest decline in rates.

Besides, in Indian cotton futures are expected to fall during the week as estimates of higher output due to ample rains and favourable weather and subdued exports are seen weighing on sentiment. Harvested cotton in India, the world’s second-largest grower, typically starts arriving in local markets from September end or October. “A timely monsoon ensures healthy progress of the plants and is likely to bring in better yield. With favourable conditions, we can expect an improved crop in the forthcoming year,” said J. Thulasidharan, president, Indian Cotton Federation (ICF).

According to the Reuters, the ICE cotton eased on Monday under pressure from expectations of rain in Texas, the top producing state in the United States, where dry conditions have driven concern over supplies in the world’s top exporter. The most-active December cotton contract on ICE Futures US edged down 0.46 cent, or 0.5 percent, to finish at 84.00 cents per lb. Trading volumes were below average and second-month prices were down about 10 percent from a peak of 93.72 cents a lb set last month as speculators piled into the cotton market. The December contract settled just below its 200-day moving average of 84.04 cents a lb.

The following deals reported as 1600 bales of cotton from Shahdad Pur at Rs 6900-6950, 1000 bales from Tando Adam at Rs 6900-6950, 2000 bales from Sanghar at Rs 6900-6950, 2000 bales from Mir Pur Khas at Rs 6900-7000, 400 bales from Hyderabad at Rs 6900-6950, 2000 bales from Nawab Shah at Rs 6900-6950, 800 bales from Kotri at Rs 6900-6950, 600 from Daur at Rs 6900-6950, 800 bales from Shah Pur Chakar at Rs 6950, 1000 bales from Khair Pur at Rs 6900-6950, 800 bales from Kassowal at Rs 6950-7000, 200 bales from Pak Pattan at Rs 6950, 200 bales from Vehari at Rs 6950, 800 bales from Khanewal at Rs 6990-7050, 600 bales from Haroonabad at Rs 7000, 400 bales from Burewala at Rs 7000, 400 bales from Bakhar at Rs 7000 and 400 bales from Sheikhu Pura at Rs 7050, 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 16.09.2013
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37.324 Kgs        6,850       155        7,005        7,055             -50
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Equivalent
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40 Kgs            7,341       155        7,496        7,550             -50
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Courtesy Business Recorder

Published in ZaraiMedia.com

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