Cotton market: rates fall on moderate trade

December 01, 2013

Cotton
Cotton

Cautious buying was seen on the cotton market on Saturday as some leading mills and spinners were expecting for further decline in prices, dealers said. The official spot rate maintained overnight levels at Rs 6,400 for the second day in a row, they added.

Prices of seed cotton in Sindh per 40 kg were also unchanged at Rs 2000-3000 and, in Punjab rate held the overnight levels at Rs 2700-3100, dealers said. In the ready session, over 20,000 bales of cotton changed hands between at Rs 6400-6650, they said.

According to the market sources, mills did buying of fine quality as ginners willingly lower the asking prices. Cotton analyst, Naseem Usman said that yarn prices are not showing improvement which is very discouraging for traders. The ginners have storage problem and on the other hand, falling prices causing an adding problem for them, he said and adding that China has huge stock of cotton, creating a lot of confusions among traders.

Adds Reuters: Cotton futures rose on Friday and recovered the previous session’s losses to end the month little changed, as trade buying counterbalanced an investor sell-off and worries over global surpluses. The most-active March cotton contract on ICE Futures US edged up 0.91 cent, or 1.2 percent, to settle at 79.35 cents a lb. Trading volumes on ICE were lighter than average following Thursday’s US Thanksgiving holiday, with a delayed opening at 8 am EST and early close of 1 pm.

The following deals reported as 1000 bales from Shahdad Pur at Rs 5400, 200 bales from Dadu at Rs 6200, 1000 bales from Saleh Pat (BCI) at Rs 6400, 400 bales from Haroonabad at Rs 6325, 400 bales from Faqir wali at Rs 6350, 400 bales from Samundari at Rs 6350, 800 bales from Mian Chano at Rs 6350-6375, 400 bales from Chichawatni at Rs 6375, 400 bales from Tonsa Sharif at Rs 6400, 600 bales from Khanewal at Rs 6400, 1000 bales from Jahanian at Rs 6400, 2600 bales from Bahawal Pur at Rs 6400-6450, 1200 bales from Ahmed Pur at Rs 6450-6500, 600 bales from Feroza at Rs 6450, 1400 bales from Yazman Mandi at Rs 6450-6500, 2000 bales from Noor Pur at Rs 6465, 600 bales from Jalal Pur at Rs 6500, 400 bales from Layyah at Rs 6500, 600 bales from Jam Pur at Rs 6500, 400 bales from Rajan Pur at Rs 6600 and 2400 bales from Mian Wali at Rs 6650, they added.

 

===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                  on 28.11.2013
===========================================================================
37.324 Kgs        6,400       155        6,555        6,555             NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs            6,859       155        7,014        7,014             NIL
===========================================================================

 

Courtesy Brecorder

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