Commenting on the present trend in the market, some experts said a very little number of exporters entered the market, made fresh buying for good profit after dollar's surge versus the rupee.
Mills were trying to cover forward buying, they said and adding that the Cotton Crop Assessment Committee (CCAC) is giving the cotton production estimate 13.3 millions bales in the December meeting, but on the other hand, the Pakistan Cotton Ginners Association (PCGA) is opposing the figure, as the PCGA expect crop size is below the expected figure due to rains and floods in the country, they said. Cotton analyst, Naseem Usman said that weaker rupee to help in the export earning of ready-made garments and yarn. Some ginners are trying to hold the unsold stock as they hope this strategy will be beneficial for them.
According to the Reuters, Cotton eased off two-month highs to settle slightly lower on Wednesday as producers sold into the recent rally, while volumes were extremely low with speculative investors sitting on the sidelines. "The trade is buying physical cotton (from producers) and selling it against the board," said a US broker.
Ending three days of gains that took prices to highs last seen in October, the most-active March cotton contract on ICE Futures US settled down 0.06 cent, or 0.08 percent, at 75.89 cents per lb. Buying ebbed slightly after prices rose earlier in the day to 76.05 cents. Volume slumped sharply though, with less than 7,000 contracts in March changing hands on the day. That was some 65 percent less than its 30-day average.
The following deals were reported: 400 bales from Mirpurkhas at Rs 5250, 400 bales from Khadro at Rs 5300, 800 bales from Upper Sindh at Rs 6100, 3000 bales from Khairpur/Upper Sindh (BCI) at Rs 6150, 1000 bales from Uch Sharif at Rs 5900, 400 bales from Vehari at Rs 5900/5950, 3600 bales from Hasilpur at Rs 5900/5950, 400 bales from Faqir Wali at Rs 5900-6000, 1000 bales from Bahawalpur at Rs 5950, 400 bales from Chistian at Rs 5950, 1200 bales from Haroonabad at Rs 5950/6050, 1000 bales from Dera Ghazi Khan at Rs 6050, 400 bales from Fort Abbas at Rs 6050, 800 bales from Layyah at Rs 6050, 400 bales from Khanewal at Rs 6050, 4000 bales from Rahimyar Khan at Rs 6100, 400 bales from Bakkhar at Rs 6100, 400 bales from Jhang at Rs 6200, 2200 bales from Mianwali at Rs 6200 and 1200 bales from SDK at Rs 6100, 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 19.12.2012
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37.324 Kgs 6,000 155 6,155 6,155 NIL
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Equivalent
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40 Kgs 6,430 155 6,585 6,585 NIL
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