Cotton market: business activity slackens after PCGA report

December 04, 2013

Cotton Market
Cotton Market

Leading mills and spinners were on the sidelines on the cotton market on Tuesday following the better-than-expected phutti arrivals report by the Pakistan Cotton Ginners Association (PCGA), dealers said. The official spot rate remained unchanged at Rs 6,400, they added.

Price of seed cotton in Sindh per 40 kg held the overnight levels at Rs 2100-2900, in Punjab prices adopted same pattern, showing no change at Rs 2600-3100, dealers said. In the ready session, over 12,000 bales of cotton changed hands between at Rs 4700-6650, they said.

According to the PCGA fortnightly report, around 11.45 million bales of cotton have reached ginneries across the country by December 1, 2013, registering 15.27 per cent increase as compared to corresponding period last year. Market sources said that prices may fall in days to come. Because buyers likely to prefer to adopt wait-and-see attitude in expectations of decline in rates, they added. Cotton analyst, Naseem Usman said if cotton prices stabilise in the global market, then rates will started improving locally.

Besides, about 1075 ginning factories of the country have started the process of cotton ginning from December 1, 2013. The PCGA sources said here on Tuesday, 840 ginning factories across the Punjab have started ginning. Around 235 factories had started ginning from December 1 in Sindh.

Reuters adds: Cotton futures fell on Monday, pressured by a stronger US dollar and demand concerns after top consumer China began selling last week from its behemoth state reserves. The benchmark March cotton contract on ICE Futures US closed down 0.73 cent, or 0.9 percent, at 78.62 cents a lb.

The Thomson Reuters/Core Commodity CRB index was down on the day. Some 226,000 bales of cotton have been tendered against the December contract due to expire on December 6, exchange data showed on Monday. The December contract finished down 0.87 cent, or 1.1 percent, at 77.27 cents a lb.

The following deals reported as 200 bales of cotton from Sanghar at Rs 4700, 400 bales from Shahdad Pur at Rs 5300-5400, 400 bales from Garha Mor at Rs 6300, 800 bales from Sahiwal at Rs 6300, 400 bales from Tiba Sultan Pur at Rs 6300, 400 bales from Pir Mehal at Rs 6350, 600 bales from Khanewal at Rs 6400, 600 bales from Kot Radha Kishan at Rs 6400, 800 bales from Yazman Mandi at Rs 6400, 400 bales from Bahawal Nagar at Rs 6400, 400 bales from Fort Abbas at Rs 6425, 1800 bales from Bahawal Pur at Rs 6400-6450, 1000 bales from Burewala at Rs 6450, 600 bales from Jalal Pur at Rs 6475, 400 bales from Shujabad at Rs 6500, 400 bales from Layyah at Rs 6500, 400 bales from Bakhar at Rs 6500 and 2000 bales from Mian Wali at Rs 6625-6650, 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 02.12.2013
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37.324 Kgs        6,400       155        6,555        6,555             NIL
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Equivalent
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40 Kgs            6,859       155        7,014        7,014             NIL
===========================================================================

 Courtesy Brecorder

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