Seedcotton prices higher on cotton market

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From International Desk - Special Reports

Seedcotton prices were higher on the cotton market on Thursday.

The absence of proper attendance was marked as the major part of the city is in grip of uncertainty after the killing of political workers on Tuesday and Wenesday, dealers said.

Official spot rate by the Karachi Cotton Association (KCA) was unchanged at Rs 5300, they said.

Prices of seedcotton in Sindh were higher at Rs 1900-2350 and in the Punjab rates also picked modestly at Rs 2000-2650, they said.

In the daily business, nearly 5000 bales of cotton changed hands between Rs 3800-5600, they added.

Market sources said that a major factor, which stabilising the cotton rates is continued rise in the NY cotton futures and other big reason is decrease in the arrivals of phutti with the passage of time.Some experts said that after the news that India to consider about the cotton exports policy next week may play an important role in future direction of the cotton market.

According to a report, a panel of ministers will review the country's cotton exports situation next week, India, which had lifted ban on cotton shipments imposed on March 5, but stopped registering fresh export orders.Additionally, despite knowing the fact that exports are still on decline, they were busy in making deals in a big way in expectations of increase in days to come, they said.

Other negative development is that, seven percent decline was seen in exports of textile and clothing products as a result of world recession, leading a cut in demand by the European Union and the United States, analysts said.According to the Reuters cotton futures finished Wednesday near a two-month high on speculative fund buying as tight nearby supplies and steady demand for US cotton stoked an advance that should continue in nearby contracts, analysts said.

The benchmark May contract on ICE Futures US rose 1.44 cents, or 1.5 percent, to end at 94.03 cents per lb, dealing from 91.90 to 94.08 cents.

It was the loftiest close on the spot cotton contract since February 7.

Volume traded amounted to around 28,300 lots, about 15 percent over the 30-day norm, Thomson Reuters data showed.

The following deals were reported: 200 bales of cotton from Khipro sold at Rs 3800, 800 bales of cotton from Ghotki at Rs 5400-5600, 400 bales of cotton from Chichawatni (Low Quality) at Rs 3800, 200 bales of cotton from Khanewal at Rs 4900, 400 bales of cotton from Hasil Pur at Rs 5000, 200 bales of cotton from Vehari at Rs 5025, 200 bales of cotton from Arif Wala at Rs 5200, 400 bales of cotton from Haroonabad at Rs 5300, 400 bales of cotton from Liaquat Pur at Rs 5400, 400 bales of cotton from Feroza at Rs 5400, 600 bales of cotton from Ahmed Pur at Rs 5400-5500, 200 bales of cotton from Chani Goth at Rs 5500.

Courtesy: Business Recorder

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