KARACHI: Activity on the cotton market on Friday remained moderate where steady flow of buying from needy spinners and exporters kept lint prices firm.
However, short covering by millers was aimed to cover up stocks required during long Ashura closure. Much of the buying interest remained restricted to quality lint required for meeting export orders of yarn.
Floor brokers said that the Trading Corporation of Pakistan (TCP) has planned to procure 200 cotton bales per month from each ginning factory.
This means a total of 200,000 bales would be lifted each month by the TCP from around 1,000 ginneries presently operating in Sindh and Punjab, they added.
The brokers suggested that this would not have much needed impact on the lint price because presently 125,000 bales are being produced daily.
Looking at this development, the Pakistan Cotton Ginners Association (PCGA) has already advised all the stakeholders in the cotton economy to act normal and do not take any decision in haste.
Meanwhile, world cotton markets remained easy where New York cotton after making slight recovery a day earlier reeled back, with all the future contracts closing with fresh falls.
The Karachi Cotton Association (KCA) spot rates were firm at overnight improved rates.
The following major deals were reported to have changed hands on ready counter: 3,000 bales Khairpur at Rs5,200 to Rs5,250, 2,000 bales upper Sindh at Rs5,200 to Rs5,250, 800 bales Multan at Rs5,175 to Rs5,250, 1,000 bales Haroonabad at Rs5,200 to Rs5,250, 1,400 bales Bahawalpur at Rs5,200 to Rs5,275, 2,000 bales Khanewal at Rs5,200 to Rs5,300, 1,000 bales Burewala at Rs5,250, 1,000 bales Mianwali at Rs5,300, 2,000 bales Rajanpur at Rs5,300, 1,600 bales Rahimyar Khan at Rs5,300, 2,000 bales Layyah at Rs5,300, 1,000 bales Sadiqabad at Rs5,300 and 1,600 bales Fazilpur at Rs5,300.
The following are Friday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.
Published in Dawn, November 1st, 2014
Dear visitor, the comments section is undergoing an overhaul and will return soon.