Cautious selling by growers was again witnessed on the cotton market on Friday ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report due next week, dealers said. The official spot rate was unchanged at Rs 5500, dealers said. In Sindh, seed cotton prices were at Rs 2500 and Rs 3100 and in Punjab rates were at Rs 2600 and Rs 3200, they said.
In the ready business, nearly 14,000 bales of deals were finalised between Rs 4600 and Rs 4800, they said. According to the market sources, prices were firm on the back of short supply and partly because of rumours of further surge in the dollar rate versus the rupee.
The ginners were reluctant, waiting for the PCGA fortnightly report to make a realistic approach towards selling, they added.
Cotton analyst, Naseem Usman said that supply is short against the demand, keeping prices firm and may push rates further higher in coming days. Reuters adds: ICE cotton futures rose in light volume on Thursday, as merchants said physical demand remained weak and that market participants were waiting on further clarity on the impact of recent rains in US growing regions on harvest progress.
December cotton on ICE Futures US settled 0.35 cent lower on Thursday, a 0.6 percent loss, at 62.32 cents per pound. It traded within a range of 62.16 and 62.92 cents a pound.
The following deals reported: 600 bales of cotton from Sanghar at Rs 4650-5000, 400 bales from Shahdadpur at Rs 5050, 600 bales from New Saeedabad at Rs 5300-5450, 200 bales from Shahpur Chakar at Rs 5350, 2000 bales from Nawabshah at Rs 5350-5425, 400 bales from Kazi Ahmed at Rs 5450, 1600 bales from Khairpur at Rs 5500-5600, 400 bales from Rohri at Rs 5600, 1000 bales from Upper Sindh at Rs 5700, 400 bales from Burewala at Rs 5300, 400 bales from Chichawatni at Rs 5350, 200 bales from Kasoowal at Rs 5350, 400 bales from Fort Abbas at Rs 5600, 1000 bales from Yazman Mandi at Rs 5600-5700, 400 bales from Haroonabad at Rs 5700, 1400 bales from Mianwali at Rs 5750-5800, 1200 bales from Sadiqabad at Rs 5775-5800, 800 bales from Rahim Yar Khan at Rs 5790, 400 bales from Bahawalpur at Rs 5800 and 400 bales from Rajanpur at Rs 5800, dealers said.
The KCA Official Spot Rate for Local Dealings in Pakistan 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
37.324 kg 5,500 135 5,635 5,635 NIL
40 Kgs 5,894 145 6,039 6,039 NIL