No respite seen in downturn

No respite seen in downturn

No respite was seen in downtrend on the cotton market on Thursday in the process of modest trading, dealers said. The official spot rate continued to slide, falling more Rs 100 to Rs 6,600, dealers said. In Sindh and Punjab, seed cotton prices dropped modestly at Rs 2900-3200, per 40 kg, respectively, they said. In ready business, nearly 3000 bales of cotton changed hands between Rs 6500 and Rs 6900, they said. Cotton analyst, Naseem Usman said that most of the leading mills and spinners were on the sidelines mainly because of poor quality of cotton.

He also said that rapidly fall in the cotton rates on the world market pushed rates lower further and the other factor was reports of China selling out it’s reserves cotton stock to the local industry, depressing the world market, including Pakistan Some experts said that international trend is dominating the local market and may continue in the near future.

Reuters adds: ICE cotton futures fell to their lowest in nearly a month on Wednesday as speculators liquidated long positions in follow through selling after the natural fiber market traded limit down on Tuesday, ahead of the release of reports from the US government this week.

The following deals were reported: 1000 bales of cotton from Shahdadpur at Rs 6500-6800, same figure from Sanghar at Rs 6550-6700, 200 bales from Hyderabad at Rs 6600, 400 bales from Khipro at Rs 6600-6700, 200 bales from Tando Adam at Rs 6800 and same number from Vehari at Rs 6900, dealers said.

 


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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

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                                    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

                                                  on 10-08-2016

===========================================================================

37.324 kg         6,600       135         6,735        6,835          - 100

Equivalent

40 kgs            7,073       145         7,218        7,325          - 107

===========================================================================

 

Copyright Business Recorder, 2016
 

Copyright Reuters, 2016
 

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