KARACHI: Cotton prices hit season’s high as buyers remained in forefront on the local market on Wednesday, dealers said.
The official spot rate was higher by Rs 50 to Rs 6500, they said. More or less 200 bales of Baloch cotton sold at Rs 7000, they said and adding that Baloch cotton produced around 5000 bales per year.
Besides, in the ready session, over 25,000 bales of cotton changed hands between Rs 5600-6800, they said.
In Sindh seed cotton prices were up by Rs 100 to Rs 2800-3300, in the Punjab rates were at Rs 2900-3400, as per 40 kg, they said.
According to the market sources, high demand originated from leading spinners and mills, induced positive sentiments.
Cotton analyst, Naseem Usman said buying spree originated by reports of recent heavy fog in the Punjab could adversely affect growth of cotton crop.
On the other hand, pace of phutti arrivals slowed down due to the said reason. Other experts attributed the slight fall in volume of business to cautious attitude of ginner towards the new deal, they said.
Additionally, the All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz has urged the government to withdraw restrictions on import of cotton to let the industry meet the export requirement of quality textile products by the international buyers.
Adds Reuters: ICE cotton futures fell over a percent on Tuesday weighed down by selling by funds ahead of the monthly world agricultural demand and supply estimates (WASDE) data due later in the week.
Cotton contracts for December settled down 0.78 cent, or 1.13 percent, at 68.07 cents per lb. It traded within a range of 68.01 and 68.89 cents a lb.
The contract registered its biggest one day percentage drop since October 26.
Total futures market volume rose by 11,547 to 56,101 lots. Data showed total open interest gained 1,688 to 236,988 contracts in the previous session.
The following deals were reported to have changed hands on the ready counter: 800 bales of cotton from Ghotki at Rs 6750, 1000 bales from Rohri at Rs 6450/6500, 1400 bales from Khairpur at Rs 6500/6600, 2000 bales from Shahdadpur at Rs 5600/6100, 200 bales from Shahpur Chakar at Rs 6200, 1200 bales from Tando Adam at Rs 5600/6150, 200 bales from Buchari at Rs 6250, 400 bales from Kotri at Rs 6000, 1600 bales from Fazilpur at Rs 6700/6800, 600 bales from Muhammadpur Dewan at Rs 6750, 3200 bales from Rahim Yar Khan at Rs 6750, 800 bales from Liaquatpur at Rs 6700/6750, 1600 bales from Sadiqabad at Rs 6700, 1200 bales from Alipur at Rs 6700, 1400 bales from Rajanpur at Rs 6700/6800, 800 bales from DG Khan at Rs 6650, 200 bales from Lodhran at Rs 6600, 400 bales from Mianwali at Rs 6600, 600 bales from Fort Abbas at Rs 6450/6600, 600 bales from Bahawalpur at Rs 6600, 400 bales from Ahmedpur East at Rs 6600, 600 bales from Layyah at Rs 6450/6500, 400 bales from Hasilpur at Rs 6500, 600 bales from Burewala at Rs 6500, 800 bales from Haroonabad at Rs 6450/6500, 400 bales from Chichawani at Rs 6450 and 200 bales from Vehari at Rs 6450, they said.
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16″
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 6,500 145 6,645 6,595 + 50/-
40 kgs 6,966 155 7,121 7,067 + 54/-