Dollar factor causes panic buying: Cotton Market

September 27, 2013

Cotton Spot Rates
Cotton Spot Rates

Dollar factor caused panic buying, which pushed up prices sharply higher on the cotton market on Thursday as mills and spinners both made active purchasing, dealers said. The official spot rate maintained upward trend, picking up further Rs 100 to Rs 7100, they said. Prices of seed cotton in Sindh per 40 kg were modestly higher at Rs 3250-3400, in Punjab prices were at Rs 3200-3233, dealers said.

In the ready session, as a result of high rate of dollar, a deal of 1200 bales of cotton from Punjab was realised at Rs 7,400 in late-evening, over, 15,000 bales of cotton changed hands between Rs 7000-7300, they said. Light rains in Sindh cotton belt was an adding factor behind the fresh surge in the rates, experts said, it was looking that traders were in anxiety because of unsettled money market, they added. The Cotton Crop Assessment Committee (CCAC) report, in which it lowered the crop size to 11.95 million bales for the current season, also played a role in rush buying of cotton, analysts said.

Cotton analyst, Naseem Usman said that if dollar’s rate goes up, it is most likely that rates of cotton will increase in days to come. According to the Reuters, ICE cotton inched up for a second session on Wednesday as unfavourable harvesting weather reinforced worry over upcoming supplies in the United States, the world’s top exporter, and as investors cautiously returned to buying. The most-active December cotton contract on ICE Futures US closed up 0.27 cent, or 0.3 percent, at 84.65 cents a lb.

The following deals reported as 1000 bales of cotton from Shahdadpur at Rs 7000-7100, 800 bales from Tando Adam at Rs 7000-7100, 1200 bales from Sanghar at Rs 7000-7100, 1600 bales from Mirpurkhas at Rs 7050/7100, 2000 bales from Nawab Shah at Rs 7200/7250, 1200 bales from Khairpur at Rs 7200/7250, 400 bales from Upper Sindh at Rs 7250, 1600 bales from Chichawatni at Rs 7200/7300, 600 bales from Hasilpur at Rs 7200/7250, 400 bales from Yazman Mandi at Rs 7200, 400 bales from Ahmedpur at Rs 7200, 400 bales from Burewala at Rs 7200, 200 bales from Bahawalpur at Rs 7200, 400 bales from Taunsa Sharif at Rs 7200, 400 bales from Tandlian at Rs 7200, 200 bales from Rajanpur at Rs 7200, 600 bales from Haroonabad 7250-7300, 400 bales from Bahawalnagar 7300, 800 bales from Sahiwal at Rs 7300, 200 bales from Theengmor at Rs 7300, 400 bales from Bhakkar at Rs 7300, 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-Karachi
                                                  on 25.09.2013
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37,324 Kgs         7,100      155        7,255         7,155           +100
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Equivalent
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40 Kgs             7,609      155        7,764         7,657           +107
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Courtesy Business Recorder

Published in ZaraiMedia.com

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