Cotton market: prices firm amid modest trading

December 05, 2012: Rates moved up cautiously on the cotton market on Tuesday after the short fall in phutti arrivals in the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. Official spot rate was unchanged at Rs 5,900, they said. Above, 1300 bales of cotton finalised between Rs 5650 and Rs 600, they said.

Prices of seedcotton (phutti) in Sindh were nearly unchanged at Rs 2500-2700, in Punjab, rates were at Rs 2600-2900, they said. According to some analysts, despite lower-than-expected phutti arrivals, prices any significant change and this was some surprising for the ginners, as many in the market were expecting major hike in the rates.

The mills and spinners were importing fine quality cotton at the local prices, this is a leading factor, which did not allow the prices to go up sharply, experts said. According to the Reuters, the US cotton futures hit their highest levels in almost six weeks on Monday on speculative buying and a weaker dollar but pared gains late in the day on technical selling.

Prices rose almost one percent and pierced 74 cents per lb in early trading for the first time since October 23 as fresh speculative money piled into fibers on the first day of the month. Later on, tentative producer and technical selling pushed prices off their highs, with the most-active March contract on ICE Futures US settling up 0.07 cent, or 0.09 percent, at 73.98 cents per lb.

The following deals were reported: 1000 bales of cotton from Shahdad Pur at Rs 5650, 800 bales from Khair Pur at Rs 6000/6050, 1000 bales from Upper Sindh at Rs 6050, 200 bales from Bakkhar at Rs 5900, 800 bales from Layyah at Rs 5900-6100, 400 bales from Ali Pur at Rs 5950, 800 bales from Tonsa Sharif at Rs 5950/6075, 400 bales from Haroonabad at Rs 5975, 800 bales from Khichi Wala at Rs 6000, 600 bales from Hasil Pur at Rs 6000/6050, 400 bales from Mian Chano at Rs 6000, 200 bales from Bahwal Pur at Rs 6000, 400 bales from Basti Malook at Rs 6000, 400 bales from Khan Pur at Rs 6000, 600 bales from Sadiqabad at Rs 6000, 400 bales from Faqir wali at Rs 6000, 400 Fort Abbas at Rs 6000, 400 bales from Jalal Pur at Rs 6000, 2000 bales from Rahim Yar Khan at Rs 6050/6100, 400 bales from Shadan Lund at Rs 6075 and 400 bales from Rajan Pur at Rs 6075, they said.

Courtesy Business Recorder