Cotton market: lower rates propel ginners to sell at current levels

November 27, 2013

cotton-market
cotton-market

A downward trend in prices against falling consumptions, forced the ginners to sell as much as possible at the present rates, dealers said. The official spot rate was unchanged at Rs 6,350, they said. Price of seed cotton in Sindh per 40 kg at Rs 1800-2800 and, in Punjab rates did not move any side at Rs 2500-3000, dealers said. In the ready session, over 18,000 bales of cotton changed hands between at Rs 6300-6650, they said.

Market sources said that nothing has changed as ginners were unnerved under the circumstances. Supply is strong but there is no improvement in demand from buyers, most of the time they are sidelines in the absence of fresh leads, experts said and adding that Iran deal may help to revive trading activity along with other businesses. Disruption in gas supply for three-month was another adding factor, other brokers said. Naseem Usman, cotton analyst, said that dullness and lack of buying interest in cotton yarn from importing countries is a double edge sword for the cotton traders.

Adds Reuters: ICE cotton rallied the most since mid-August on Monday, climbing from last week’s 10-month low as a recent pickup in China’s government stockpiling renewed hopes that strong demand in the world’s top consumer will continue. The most-active March cotton contract on ICE Futures US rose 1.23 cents, or 1.6 percent, to settle at 78.46 cents a lb, recovering the losses seen as the second-month sank to a 10-month low of 76.65 cents a lb on Friday.

Trading volumes were lighter than average ahead of the US Thanks-giving holiday this week. Trading of cotton futures on ICE would be closed on Thursday. The following deals reported as 1000 bales from Khair Pur at Rs 6375, 1000 bales from Khair Pur (BCI) at Rs 6450, 600 bales from Upper Sindh at Rs 6375, 1000 bales from Upper Sindh (BCI) at Rs 6450, 400 bales from Chunia at Rs 6300, 800 bales from Khanewal at Rs 6300-6400, 400 bales from Vehari at Rs 6300, 400 bales from Yazman Mandi at Rs 6350, 1000 bales from Bahawal Pur at Rs 6375/6400, 400 bales from Garh Maharaja at Rs 6400, 1000 bales from Ahmed Pur at Rs 6400, 600 bales from Jahanian at Rs 6400, 400 bales from Khichi wala at Rs 6400, 400 bales from Daran wala at Rs 6400, 1200 bales from Haroonabad at Rs 6400, 600 bales from Faqir wali at Rs 6400, 800 bales from Fort Abbas at Rs 6400, 400 bales from Maroot at Rs 6400, 800 bales from Bakhar at Rs 6500, 600 bales from Layyah at Rs 6500, 600 bales from Rahim Yar Khan at Rs 6500, 400 bales from Sadiqabad at Rs 6500, 400 bales from Jalal Pur at Rs 6550, 400 bales from Shadan Lund at Rs 6550, 400 bales from Rajan Pur at Rs 6600 and 2000 bales from Mian wali at Rs 6600-6650, 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 25.11.2013
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37.324 Kgs        6,350       155        6,505        6,505             NIL
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Equivalent
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40 Kgs            6,805       155        6,960        6,960             NIL
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 Courtesy Brecorder

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