Rainfall induces panic buying, rates on the verge of rise on account of stocking for Eid holidays

Cotton market: panic buying by mills after fresh rains

Rates went up on the panic buying by mills and spinners following the fresh downpour in the cotton growing areas, dealers said on the cotton market on Wednesday. The official spot rate maintained rising tempo, picking up more Rs 50 to Rs 6,650, dealers said. In Sindh, seed cotton prices were up by Rs 100 to Rs 3400-3550 and in Punjab rates of Phutti, however, fell by Rs 50 to Rs 3000-3350, per 40 kg, they said.

In ready business, around 23,000 bales of cotton changed hands between Rs 6725 and Rs 6925, they said. According to the market sources, fears of fall in fine quality induced spinners to make forward buying of cotton. Cotton analyst, Naseem Usman said that picking operations may be slowed down in the coming days because of a Hindu festival. Commenting on the fresh rains in the country, he said that if downpour continues for a long-time, so some difficult is to predict about the direction in the market. Till now, it appeared that stable trend in the global market is also a vital role, he added. Reuters adds: Cotton futures rose marginally on Tuesday to trade in a tight range, even as weekly crop progress data from the US government offered limited support to prices.

The following deals were reported: 600 bales of cotton from Khipro at Rs 6725/6750, 200 bales from Sultanabad at Rs 6750, 800 bales from Maqsoodo at Rs 6750, 600 bales from Jhole at Rs 6750/6775, 3000 bales from Sanghar at Rs 6725/6800, 1200 bales from Mirpurkhas at Rs 6750/6800, 4600 bales from Hyderabad at Rs 6750/6810, 4000 bales from Shahdadpur at Rs 6750/6815, 600 bales from Moro at Rs 6775/6800, 4600 bales from Tando Adam at Rs 6775/6810, 400 bales from Sahiwal at Rs 6800, 400 bales from Bahawal Nagar at Rs 6825, 600 bales from Khanewal at Rs 6850, 200 bales from Vehari at Rs 6850, 600 bales from Burewala at Rs 6850, 600 bales from Mian Chano at Rs 6900 and 400 bales from Chichawatni at Rs 6925, dealers said.



The KCA Official Spot Rate for Local Dealings in Pakistan Rupees




                                    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 23-08-2016


37.324 kg         6,650       135         6,785         6,735          + 50


40 kgs            7,127       145         7,272         7,218          + 54



Copyright Business Recorder, 2016

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