Some brokers said that it was mill buying, which improved business activity and prices at the same time. Other experts said that prices also stabilise partly because of India factor, where news emerges that cotton production cut down by nearly 12 percent, which also materialised and may help in retaining the prices in the coming days. It was really a surprising factor that despite falling trend in the NY cotton futures, prices in the local market were showing firmness, they said.
According to the Reuters, the US cotton futures settled lower on Monday as late producer and technical selling hobbled an earlier rally to fresh three-week highs, with nervous investors sitting on the sidelines ahead of the US government's monthly crop report due Tuesday. Prices had rallied to fresh three-week highs, extending the previous three sessions of gains, driven by a rise in the euro. The gains evaporated in the final hour of trading on tentative selling by producers ahead of the latest US Department of Agriculture crop forecast.
The most-active March contract on ICE Futures US settled down 0.39 cent, or 0.53 percent, at 73.4 cents per lb, just shy of its intraday low of 73.27 cents hit in the final hour of trading. A stronger euro and buying across the broader commodities market had propelled prices to 74.33 cents earlier in the session, its highest level since November 16.Volumes were below average, with just under 10,000 lots of March traded on the day.
The following deals were reported: 400 bales from Shahdadpur at Rs 5300, 1000 bales from Daur at Rs 5700-5700, 600 bales from Upper Sindh at Rs 5950, 1000 bales from Bahawalpur at Rs 5850, 600 bales from Khanewal at Rs 5850, 800 bales from Burewala at Rs 5850, 200 bales from Chichawatni at Rs 5850, 200 bales from Faqirwali at Rs 5850, 200 bales from Hasilpur at Rs 5850, 400 Chistian at Rs 5850, 2000 Haroonabad at Rs 5850/5900, 200 Shujabad at Rs 5865, 200 bales from Alipur at Rs 5875, 400 bales from Jalalpur at Rs 5900, 200 bales from Liaquatpur at Rs 5900, 1000 bales from Dera Ghazi Khan at Rs 5900/5950, 1200 bales from Rahim Yar Khan at Rs 5925/5950, 1200 bales from Sadiqabad at Rs 5950/5975, 1000 bales from Layyah at Rs 5900, 1000 bales from Shadan Lund at Rs 5950, 800 bales from Tonsa Sharif at Rs 5950, 600 bales from Mohammadpur at Rs 5950/6000, 2600 bales from Rajanpur at Rs 5975/6000, 600 bales from Fazilpur at Rs 6000 and 1800 bales from Mianwali at Rs 6000/6050, they said.
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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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 10.12.2012
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37.324 Kgs 5,850 155 6,005 6,005 NIL
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Equivalent
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40 Kgs 6,269 155 6,424 6,424 NIL
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