Cotton market: prices soar on mills’ active demand

January 19, 2014

Cotton Market
Cotton Market

Prices moved up sharply on the cotton market on rising demand by mills and spinners, dealers said. The official spot rate was unchanged at Rs 7050, they added. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 3000 and Rs 3500, in Punjab rates followed same pattern, not a slight change at Rs 3000 and Rs 4000, dealers said. In the ready session, nearly, 18000 bales of cotton changed hands between Rs 6200-7600, dealers said.

Cotton analyst, Naseem Usman, said that there is a perception among the buyers that shortage of cotton to push rates higher in days to come. In fact, Generalised System of Preference (GSP) plus status by the European Union (EU) played a vital role in recent increase in the prices, other experts said. Hopefully, textile exports likely to show better-than-expected results this year after the GSP plus status, in the meantime, the main thing is availability of gas and electricity to the industries, so that country would be able to earn more foreign exchange in the coming days, they added. The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly seed cotton arrival figure till, January 15 at nearly 12.9 million bales, depicting an increase of 7.16 percent against the last year figure of 1,20,22,040 bales.

Reuters adds: ICE cotton hit a near five-month high on Friday and ended the week up 5 percent as strong charts drove buying and strong US exports stoked worry over tight supplies in the world’s top exporter, even as world inventories balloon. The benchmark March cotton contract on ICE Futures US closed up 0.61 cent, or 0.7 percent, at 86.80 cents a lb after hitting 87.14 cents a lb, the highest for the front month since August. Cotton was among the best performers in the Thomson Reuters/Core Commodity CRB index, a benchmark for global commodities markets.

The following deals reported as 400 bales from Mir Pur Khas at Rs 6200, 200 bales from Shahdad Pur at Rs 6700, 200 bales from Rohri at Rs 7100, 3000 bales from Dharki (Condition) at Rs 7400-7600, 400 bales from Burewala at Rs 6900, 600 bales from Faqir Wali at Rs 6950-7000, 2000 bales from Haroonabad at Rs 6950-7050, 200 bales from Hasil Pur at Rs 7000, 400 bales from Chistian at Rs 7000, 841 bales from Fazil Pur at Rs 7000, 200 bales from Jatoi at Rs 7000, 200 bales from Dunia Pur at Rs 7050, 200 bales from Yazman Mandi at Rs 7050, 200 bales from Bakhar at Rs 7100, 2600 bales from Rahim Yar Khan at Rs 7200, 200 bales from Jalal Pur at Rs 7200, 400 bales from Mianwali at Rs 7200, 2400 bales from Rajan Pur at Rs 7150/7250, 400 bales from Ali Pur at Rs 7200, 400 bales from Shujabad at Rs 7200, 615 bales from Ahmed Pur (Condition) at Rs 7300, 600 bales from Mian Wali (Condition) at Rs 7400 and 600 bales from Jalal Pur (Condition) at Rs 7600, 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 17.01.2014
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037.324 Kgs       7,050       155        7,205        7,205             NIL
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Equivalent
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40 Kgs            7,555       155        7,710        7,710             NIL
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Courtesy Brecorder

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