Cotton rates firm amid strong buying by mills
Firmness prevailed on the cotton market on Monday in the process of strong buying by mills and spinners, dealers said. The official spot rate was unchanged at Rs 6,500. In the ready business, over 11,000 bales of cotton changed hands between Rs 6575-6700, dealers said. Prices of seed cotton per 40 kg in Sindh were down by Rs 50 to Rs 2950-3950 and in Punjab rates also came down by Rs 150-50 to Rs 2875-3000, they said.
Market sources said that supply of seed cotton was steady and market was taking part in anticipation of rise in the rates. Cotton analyst Naseem Usman said cotton growers were waiting for further monsoon rains in both Sindh and Punjab, but in the meantime, it looked that country might achieve the desired target for the next season.
The ginners, under the circumstances, were not getting better return because of steady arrivals, other brokers said. On the other hand, reports were coming up that country might miss cotton production target of 13.25 million bales mainly because of non-availability of water during sowing season, lack of quality seeds and change of climate.
According to the Reuters, poor weather in China’s top cotton-growing region of Xinjiang may cut production in some areas by up to 10 percent, local media reported citing a provincial official and local experts.
Cotton output from China – the world’s top grower, consumer and importer of the fibre – already forecast to fall about five percent from a year ago to 6.5 million tonnes in 2013 on falling acreage. Any weather-related damage could push local prices higher and boost China’s appetite for imports. The following deals were reported as 600 bales of cotton from Hyderabad at Rs 6600-6625, 1600 bales of cotton from Tando Adam at Rs 6600-6650, 2000 bales of cotton from Sanghar at Rs 6600-6650, 2000 bales of cotton from Shahdad Pur at Rs 6600-6650, 2000 bales of cotton from Mir Pur Khas at Rs 6600-6650, 400 bales of cotton from Kotri at Rs 6625, 200 bales from Mailsi at Rs 6575, 200 bales from Multan at Rs 6600, 200 bales from Chistian at Rs 6600, 200 bales from Khanewal at Rs 6600, 400 bales from Chichawatni at Rs 6600, 400 bales from Gaggo Mandi at Rs 6600, 600 bales from Vehari at Rs 6600-6625 and 1000 bales from Burewala at Rs 6600/6700, they added.
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 27.07.2013
37.324 Kgs 6,500 155 6,655 6,555 NIL
40 Kgs 6,966 155 7,121 7,121 NIL