Cotton market: rates firm on rising demand by mills
Strong demand by mills, helped the rates to hold present levels on the cotton market on Tuesday, dealers said.
The official spot rate was unchanged at Rs 5300, they added. In ready session, around 14,000 bales of cotton changed hands between Rs 5325-5500, they said.
Prices of seed cotton in Sindh were up by Rs 50 to Rs 2500-2550 and in Punjab prices adopted the same pattern, rising by Rs 100 to Rs 2600-2650, they said.
Cotton analyst, Naseem Usman said that the mills showed interest in fresh buying to cover the short-term needs. In the meantime, some exporters and several mills were facing problems due to tense political situation caused by demonstrations and rallies in some parts of country, other experts said.
Reuters adds: cotton futures rose slightly on Monday as traders squared positions ahead of a monthly US government supply-demand forecast. The benchmark December cotton contract on ICE Futures US closed up 0.19 cents a lb, or 0.3 percent, at 64.40 cents a lb.
The US Department of Agriculture (USDA) was widely expected on Tuesday to raise its output forecast for the United States, the world’s top exporter, in a monthly crop report.
The following deals reported: 2200 bales from Sanghar at Rs 5325-5375, 600 bales from Kotri at Rs 5350, 1800 bales from MirPurkhas at Rs 5350, 1000 bales from Hyderabad at Rs 5350-5400, 2000 bales from Tando Adam at Rs 5350-5400, 2000 bales from Shahdadpur at Rs 5350-5400, 400 bales from Bahawalpur at Rs 5400, 400 bales from Samundari at Rs 5400, 600 bales from Vehari at Rs 5400-5500, 400 bales from Chichawatni at Rs 5425-5500, 200 bales from Depalpur at Rs 5450, 400 bales from Sahiwal at Rs 5450, 200 bales from Arifwala at Rs 5475, 200 bales from Shujabad at Rs 5500, 600 bales from Burewala at Rs 5500, 800 bales from Khanewal at Rs 5500 and 200 bales from Mian Chano at Rs 5500, 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 DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 11.08.2014
37.324 Kgs 5,300 155 5,450 5,450 NIL
40 Kgs 5,680 155 5,840 5,840 NIL