Global financial meltdown affects cotton market
October 20, 2008 - Pakistan
Although spot rates at Karachi Cotton Association (KCA) had been experiencing a sliding trend from quite some time now, brisk trading session continued.
During the week starting from October 13 to 18, the market remained in the tight grip of traders.
Ghulam Rabbani, Director of KCA, stated that financial meltdown in the global arena have been effecting the commodity markets across the world. On Monday, October 13, spot rate at KCA declined Rs75 to Rs 3,400 per maund. However demand for fine lint move to the higher side.
On this day, around 200 bales of southern Punjab were traded at Rs3,425 per maund, about 100 bales of Mirpurkhas at Rs3,415 per maund and 200 bales of upper Sindh exchanged hands at Rs3,475 per maund.
On Tuesday, the spot rate at KCA jumped a step and the settlement was declared at Rs3450 per maund with an increase of Rs50 per mound. Ample of trade deals were observed in the market and the price range stood with in the range of Rs3425 to Rs3500 per mound. Demand from the leading players for all qualities of lint had moved up.
Over 200 bales of Mian Channu were sold at Rs3500; 400 bales of Khanewal traded in Rs3475; 400 bales of Fort Abbas at Rs3475. 200 bales of Rajan pur and 400 bales of Faqirwali exchanged hands at Rs3450, while 600 bales of Burewala at Rs3425 per mound.
On Wednesday, according to Mr Ghulam Rabbani, trading sessions observed a moderate trend, amid growing demand of fine lint.
The spot rate at KCA stood firm and the prices of cotton stood at Rs3,450 per maund with numerous inquires poured in for lint of various grades. Spinners and mill owners procured lint of all qualities. Market hovered around Rs3,450 to Rs3,520 per maund during the trading session, while fine lint moved above spot rate level.
About 200 bales of upper Sindh were traded at Rs3,500 per maund, 200 bales of Mirpurkhas at Rs3,485 per maund, around 200 bales of southern Punjab at Rs3,485 per maund and 200 bales of Nawabshah exchanged hands at Rs3,450 per maund.
The spot rate at KCA stayed firm on Thursday and the settlement declared at Rs3450 per maund with no changes. Thin activities observed in the market.
Leading buyers procured lint from the ginners of Sindh and Punjab at around Rs3,300 per maund and Rs 3,450 per maund during the trading session.
On Friday, cotton rates at KCA lost some height and the settlement declared at Rs3,375 per maund reflecting a fall of Rs75 per mound. Market activities were quite poor due to absence of leading buyers. Sellers and buyers in lower Sindh struck some deals for raw grade lint on lower rates while fine lint were traded at slightly higher price.
The spot rate at KCA remained unchanged on Saturday as it was on the previous day and the settlement stood at Rs3375 per maund. Market remained inactive due to the dearth of buyers.
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