Cotton prices slide further

Published November 9, 2014
Reuters/File
Reuters/File

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

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.