Modest trading was seen on the cotton market on Wednesday as official spot rate was sharply higher by Rs 200 amid persisting demand by mills, dealers said.
Official spot rate jumped by Rs 200 more to Rs 6,300, they added.
Prices of seedcotton in Sindh were unchanged at Rs 2200-2500, in the Punjab, rates were inert at Rs 2200-2900, they said.In ready business, 3,500 bales of cotton changed hands between Rs 4600-7000, they said.
According to the market sources, prices were on upward trend and it looks that the rates may stabilise due to short crop.
Naseem Usman said that mills were interested in fresh buying but it appeared that the ginners were not ready to oblige them due to short crop with them.Instead, they were trying to increase the rates of fine variety from the current levels owing to very little stock, other brokers said.
Reports appearing that China’s cotton acreage in 2012 is expected to decline 9.4 percent year-to-year, as weak cotton prices and unseasonably cool weather in some growing regions prompted farmers to delay planting, the China Cotton Association (CCA) said.According to the Reuters, the NY US cotton futures finished lower on Tuesday, as investors grabbed profits when the market hit a three-week high for a second straight day, but analysts said selling remained within the recent range, with prices still above technical support.Benchmark July cotton futures on the ICE Futures US exchange closed 1.02 cents lower, down 1.10 percent, at 91.46 cents per lb, and traded from 90.05 to 92.86 cents.
The session top, was the contract’s highest in 20 days, nearly forming a double top with Monday’s peak.July volume was healthy at 15,412 lots.
Deliveries on the May contract began Monday night.
May’s open interest dropped sharply to 299 lots, equivalent to about 31,145 (450-lb) bales.
May volume came to a paltry 46 lots.
The contract closed at 89.36 per lb.The following deals were reported, 100 bales of cotton from Rohro at Rs 7000, 200 bales of cotton from Mian Chunnu (low variety) at Rs 4600, 324 bales of cotton from Khanewal at Rs 6400, 432 bales of cotton from Ghazi Ghat at Rs 6550, 200 bales of cotton from Haroonabad at Rs 6500, same figure from Uch Sharif at Rs 6600, 400 bales of cotton from Hasil pur at Rs 7000, 1018 bales of cotton from Ahmed pur East at the same rate and 400 bales of cotton from Shehar Sultan at the equal level, they said.
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.<br/><br/>KHI.<br/><br/>As Ex-Karachi
37.324 Kgs 6,300 130 6,430 6,230 +200
40 Kgs 6,752 130 6,882 6,667 +215
Copyright Business Recorder, 2012