contentKARACHI: Trade at the Karachi cotton market during the last week remained vigorous. The KCA spot rate increased Rs 35 per maund on Friday to Rs 2,385 per maund.
Traders said the leading mills and spinners were eager to buy cotton. Quality lint of Punjab dominated the trading for most of the sessions during the past trading week. Trade was suspended on Wednesday on account of Iqbal Day.
They said due to high demand of cotton from buyers, the ginners of Punjab and Sindh were engaged in a price war. The spinners participated in the trading with more energy, as the leading mills mostly eyed the quality lint. The private sector exporters also purchased cotton from ginners on high rates.
The poor quality lint fetched around Rs 2,225 per maund to Rs 2,240 per maund during the past week, traders said.
The quality lint of Punjab changed hands around Rs 2,460 during the week. A senior trader said New York futures soared on Saturday as uncertainty over cotton crop and production capabilities of earthquake-ravaged Pakistan sparked massive fund and speculative buying. He said cotton futures settled 203 points higher at 55.66 cents per pound on the New York Board of Trade (NBOT), following a price range of 54.50 cents to 56.55 cents a pound.
“Pakistan is the fourth-largest cotton producer and neighbouring India is the third-largest cotton producer,” he added. Beyond Pakistan’s cotton crop loss, however, the bigger concern was its effects to supply, he added.
A trader said due to upward trend in the international prices ranging from 54 cents to 55 cents per pound, the leading mills and private sector exporters consolidated their future positions. He said cotton arrivals showed a shortfall of 24.30 percent to 4.737 million bales till November 8 compared to last year.
A senior broker said TCP floated an international tender for export of 76,500 bales of raw cotton from crop 2004-05. He said foreign buyers and Pakistani exporters participated in bidding for 25,000 bales of grade III plus with staple length 1-1/16 and 25.000 bales of III, 1-1/32.
On Saturday, the last trading session of the week, the spot rate remained Rs 2,385 per maund while around 18,000 bales changed hands. The quality lots fetched over Rs 2,465 per maund.
The volume was around 67,000 bales during the past week. The physical market prices ranged between Rs 2,325 per maund and Rs 2,450 per maund.
According to the KCA around 1,000 bales of Nawabshah fetched Rs 2,400 per maund, 200 bales of Sadiqabad at Rs 2,350 per maund, 400 bales of Tando Adam at Rs 2,325 per maund and 400 bales of Dadu at Rs 2,425 per maund.
New York Cotton December futures settled at 50.72 USC/lb and March contract closed at 54.77 USC/lb. A Index settled at 56.80 USC/lb and B Index settled at 53.90 USC/lb. staff report