In the ready business, after reduced participation by the genuine buyers, activity was nearly halve as 10,000 bales of cotton changed hands between Rs 4450-4700. Phutti prices in both the Punjab and Sindh were same at Rs 2050-2350, they added. Commenting on the present trend in the market, some brokers said that activity was thin but it's a fact that foreign demand is persisting as cotton production fell in the US, China and India, as well.
Besides, the exporters are again looking very active in making deals as the dollar is heading to touch the new highs due to speculative purchasing, they said. It looks that the dollar may make the new record by hitting the 86 level per dollar. Additionally, stock is decreasing and it is a factor, which can push the prices up in days to come, they hoped. Some deals of low quality finalised at the lower rates but it is indicating that the mills are trying to convince the ginners to bring down the asking prices of fine types, they said.
In the meantime, it looks somewhat difficult for the ginners, because despite achieving 12 million bales of cotton, country has to import cotton even at the higher rates. A few observers said that the government's move to control the export of cotton yarn seems to have failed to provide desired relief to the clothing sector as domestic yarn prices have further increased due to 33 percent fall in the production.
The weavers were of the view that restriction has been put but this move could not get the desired objective. Despite the limitation of exports of yarn, the pressure has mounted over the value added clothing sector because prices were showing upward trend, they said.
In stead of facilitating the clothing sector the government is adding problems through the absence of power and gas facilities. Though the textile sector is major source of earning of the foreign exchange reserves, they added. In the meantime, it appears that the good days are ahead because country's value added sector, among the 206 countries, participated in the trade fair Heimtextil in Germany, baged several orders from other countries, which will help in increasing the foreign exchange earnings for the country, they said.
On Thursday the NY cotton futures finished higher on trade and investor buying as the market staged a modest rebound after falling sharply over the past few sessions, brokers said. The key March cotton contract climbed 1.05 cents to finish at 71.85 cents per lb, dealing from 70.82 to 72.08 cents. Volume traded in the March contract hit 8,196 lots at 2:39 pm EST (1939 GMT).
THE FOLLOWING DEALS WERE REPORTED: 400 bales of cotton from Mirpurkhas sold at Rs 4450, 400 bales from Sadiqabad at Rs 4600, 400 bales from Tando Adam at Rs 4600, 200 bales from Jhole at Rs 4600, 1000 bales from Yazman Mandi at Rs 4700, 2000 bales from Baaal Pur at Rs 4700, 1000 bales from Rahim Yar Khan at Rs 4700, 800 bales from Dera Gazi Khan at Rs 4700, 1400 bales from Jalal Pur at Rs 4650 - 4700, 400 bales from Haroonabad at Rs 4575, 1600 bales from Ali Pur at Rs 4600 - 4700, and 400 bales from Bahawal nagar at Rs 4550.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 4,600.00 100 4,700.00
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Equivalent
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40 Kgs 4,930.00 100 5,030.00
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