Mill and spinners covered the forward buying in anticipation of rise in rates but on the other hand, the ginners were also trying to dispose off unsold stock ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, cotton analyst Naseem Usman said.
According to the Reuters, the US cotton pierced a long-term technical resistance to hit a fresh three-month high on Wednesday as speculative and light mill buying helped fuel a year-end rally. Cotton rose for a third straight session and the most-active March cotton contract on ICE Futures US settled up 0.66 cent, or 0.9 percent, at 77.06 cents per lb.
That is just shy of the intraday high of 77.07 cents, its loftiest level since September 19 when the market hit 77.34. It first hit those three-month highs on Monday on light volume before the markets shut for the Christmas holiday. Volumes were still low again on Wednesday, with just under 8,000 lots traded on the day, with many market participants out for the Boxing Day holiday.
The following deals were reported: 400 bales of cotton from Sanghar at Rs 5400, 400 bales from Mirpurkhas at Rs 5400, 600 bales from Khairpur at Rs 5950, 800 bales from Upper Sindh (BCI) at Rs 6100, 800 bales from Pak Pattan at Rs 5550, 200 bales from Chichawatni at Rs 5575, 200 bales from Uch Sharif at Rs 5825, 800 bales from Haroonabad at Rs 5840/5900, 800 bales from Bahawalpur at Rs 5850, 200 bales from Yazman Mandi at Rs 5850, 400 bales from Ahmedpur at Rs 5850, 200 bales from Hasilpur at Rs 5850, 200 bales from Faqirwali at Rs 5875, 1600 bales from Fort Abbas at Rs 5875, 800 bales from Shujabad at Rs 5875, 1400 bales from Burewala at Rs 5875/6000, 600 bales from Alipur at Rs 5900, 400 bales from Bahawalpur (BCI) at Rs 5925, 400 bales from Shadan Lund at Rs 6000, 400 bales from Fazilpur at Rs 6000, 400 bales from Layyah at Rs 6000, 400 bales from Rahimyar Khan at Rs 6050, 400 bales from Rajanpur at Rs 6100, 800 bales from Khanpur at Rs 6100 and 1200 bales from Mianwali at Rs 6100, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 26.12.2012
===========================================================================
37.324 Kgs 6,000 155 6,155 6,155 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,430 155 6,585 6,585 NIL
===========================================================================