Cotton prices at KCA continue to fluctuate
December 08, 2008 - Pakistan
The business in the market remained slack. One of the reasons could be attributed to the forthcoming Eid-ul-Azha on December 9, and most of the transporters are on leave.
In the local market small quantities of cotton were traded. 800 bales from Sanghar were sold at Rs2735-Rs2800; 6000 bales from Rahim Yar Khan at Rs3000; 3000 bales from Ahmed Pur and 800 bales from Bahawal Pur were traded at Rs3000; 2000 bales from Rajan Pur at Rs2950-Rs3000; 1400 bales from Ali Pur at Rs2900-Rs3000, 1000 bales from Shadan Lund at Rs3000; 800 bales from Shah Jamal exchanged hands at Rs2825.
The spot rate, on Friday, at KCA stood at Rs2950 per maund. Domestic market showed lack of activities for coming holidays. Rare activities observed and recorded today.
In the local market very few contracts were executed in Sindh while the trading remained in a range of Rs2,850 to Rs3,000 per maund. In Punjab all the deals were struck between Rs2,900 - Rs3,000 per maund.
The spot rate at KCA stood still at Rs2950 on Saturday.
Market activities acquired a brisk pace as Trading Corporation of Pakistan (TCP) started procuring cotton from the ginners and set a minimum support price. The demand for the fine cotton lint remained on the higher side.
During the week starting from December 1 to 6, the market remained in the tight grip of ginners.
Mr Ghulam Rabbani, one of the Directors of Karachi Cotton Association, (KCA), while speaking to Fibre2fashion.com
, told that spot rate at KCA, on Monday stood at Rs2,950 per maund with improved market activities in Punjab during the trading session.
In the local market small quantities exchanged hands. Around 200 bales of upper Sindh were traded at Rs2,900 per maund; 200 bales of Southern Punjab at Rs3,050 per maund; 200 bales of Liaquatpur were sold at Rs3,000 per maund and 200 bales of Haroonabad at Rs2,950 per maund.
On Tuesday, market bustled as traders made some aggressive moves. The spot rate at KCA jumped to Rs3000 reflecting a hike of Rs50 per maund on higher demand during the trading session.
Experts opine that price grew strong because Trading Corporation of Pakistan (TCP) intervened as second player in the cotton market.
On this day, high volumes were traded in Punjab with prices quoted at Rs3,050 per maund while in Sindh it hovered with in the range of Rs2,850 to Rs2,950 per maund depending on the quality.
In the local market, around 200 bales of upper Sindh were sold at Rs3,000 per maund; 200 bales of southern Punjab at Rs3,050 per maund; 200 bales of Mirpurkhas at Rs2,900 per maund and 200 bales of southern Punjab exchanged hands at Rs3,050 per maund.
The spot rate at KCA on Wednesday remained firm and strong and was declared at Rs3000 per maund with no changes from the previous day.
In the local market very few contracts executed in Sindh. The trading remained in a range of Rs2850 to Rs3000; while in Punjab all the deals were finalized between of Rs2900 to Rs3050.
TCP has announced the other day that initially they have bought 200 bales from each ginning factory of Pakistan at the rate of Rs3202 per maund, the rates declared is for the first purchase from TCP would be psci grade iii , staple 1-1/16.
On Thursday, the spot rate at KCA was settled at Rs3950 per maund showing a fall of Rs50 per maund. Recent arrival of cotton in the market has pushed the prices to the lower level.
The phutti prices in both Punjab and Sindh stood with in the range of Rs1425-Rs1550, informed sources from Pakistan Cotton Ginners' Association (PCGA).
According to market sources, significant fall had been observed in the daily purchases as traders were expecting cotton rates to fall further. On the other hand, ginners, were keen to sell cotton but not below the existing market price.
The thought that TCP’s involvement would bring firmness in the rates has not materialized till now, however, experts think that it will take some time.