KARACHI: The cotton prices moved lower for third consecutive session on Saturday following reports of higher phutti (seed cotton) arrivals and expected bumper crop this season (2014-15)
Floor brokers said higher phutti arrivals amid slower off-take of cotton by spinners and exporters kept lint prices under pressure. Most spot deals were made at reduced rates.
Though the working of the Trading Corporation of Pakistan (TCP) for the procurement of one million bales is at advance stages, it seems to have no impact on falling cotton prices.
Consequently, Sindh variety cotton is currently being traded in the range of Rs4,300 to Rs5,050 and the Punjab quality between Rs5,000 to Rs5,225 per maund.
Market reports suggest that the TCP has started negotiations with ginners for initially purchasing 600 bales from each ginning unit at a price of Rs6,864 per maund.
The huge difference of Rs1,800 per maund between the prevailing cotton prices in the open market and the TCP’s procurement price also failed to jack up the falling lint prices, brokers said.
On world markets, the New York cotton managed to improve further with all the future contracts recording modest gains.
The Karachi Cotton Association (KCA) spot rates were further lowered by Rs50 to Rs5,000 per maund.
The following major deals were reported to have changed hands on ready counter: 3,000 bales Khairpur at Rs4,950 to Rs5,000, 1,000 bales upper Sindh at Rs5,000, 1,800 bales Fazilpur at Rs5,200 to Rs5,225, 2,000 bales Sadiqabad at Rs5,200, 1,400 bales Layyah at Rs5,200, 600 bales Alipur done at Rs5,200, 600 bales Ahmedpur done at Rs5,175, 600 bales Rajanpur done at Rs5,225, 400 bales Mirpurkhas done at Rs4,250 to Rs4,300, 400 bales Shahdadpur done at Rs4,300, 400 bales Hasilpur done at Rs5,100 and 400 bales Bhakkar done at Rs5,150.
The following are Saturday’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 9th, 2014
