KCA raises official spot rate to Rs 5,650 on cotton market

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From International Desk - Special Reports

Official spot rates' upward trend was maintained by KCA on the cotton market on Friday on the back of short stock position, dealers said.

Official spot rate maintained its rising trend depicting further gain of Rs 50 to Rs 5650, they added.

Prices of seedcotton in Sindh were at Rs 2000-2300, and in the Punjab at Rs 2100-2750, they said.

Nearly 7000 bales of cotton changed hands between Rs 5100-6000, they added.

Commenting on the rising trend in the prices, Naseem Usman said that rates may show firmness in the coming days as home textile items attracting Indian buyers due to better quality and good colour combination.

Textile exhibition in India started from 11th and fair was expected to close on 13th but it is most likely that the date may be extended for one-day due to Pak textile products' fascination among the Indians, especially among new generation, other brokers said.Unsold stock is also decreasing day by day, this factor is expected to push prices up further in the coming days, they said.

Reports show that the India has cleared a million bales of cotton for export from pending requests.

Analysts said that despite bumper crop, India is not interested in exports of cotton to save its requirement position, they said.According to the Reuters the NY cotton futures surged to their highest close in 10 days on Thursday, mainly due to investment funds rolling long positions to back months and some outright speculative short-covering inspired in part by strong outside markets, dealers said.The benchmark May cotton contract on the ICE Futures US exchange rose 1.62 cents to finish at 93 cents per lb, dealing from 91.10 to 93.30 cents.

It was the loftiest close for cotton in 10 days, according to Thomson Reuters data.

The May contract closed above the 100-day moving average of 91.74 cents, but the 200-day MA of 99.19 cents remained out of reach, the data showed.The market has traded in a wide band from 87 to 94 cents, basis the spot contract, since the start of March, Thomson Reuters data showed.

Thursday's estimated volume reached slightly over 40,100 lots, some two-thirds above the 30-day norm but down from the prior session's 49,751 lots, according to ICE Futures US and Thomson Reuters data.

The following deals were reported: 600 bales of cotton from Mir Pur Khas sold at Rs 5300, 200 bales of cotton from Saleh Pat at Rs 6000, 200 bales of cotton from Burewala at Rs 5100, 200 bales of cotton from Dunia Pur at Rs 5400, 200 bales of cotton from Multan at Rs 5400, 200 bales of cotton from Layyah at Rs 5500, 200 bales of cotton from Dahran Wala at Rs 5600, 200 bales of cotton from Garhma Raja at Rs 5600, 400 bales of cotton from Faqirwali at Rs 5600, 1800 bales of cotton from Shujabad at Rs 5750, 400 bales of cotton from Fort Abbas at Rs 5750/6000, 200 bales of cotton from Rajan Pur at Rs 5800, 200 bales of cotton from Khanewal at Rs 5850, 200 bales of cotton from Mongi Bangla at Rs 6000, 200 bales of cotton from Lodhran at Rs 6000, 400 bales of cotton from Sadiqabad at Rs 6000, 1000 bales of cotton from Rahim Yar Khan at Rs 6000, they said.

Courtesy: Business Recorder

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