TCP's re-entry raises hopes of cotton traders
Hopes of farmers are soaring high with the news of Trading Corporation of Pakistan (TCP) entering the market for procuring cotton.
Although demand for lint moved on the higher side, spot rates acquired a declining trend, during the week starting from November 10 to 15.
Spot rate at KCA, on Monday, slumped slightly by Rs25 per maund and the settlement was declared at Rs3,175 per maund. Business activities in the Sindh region were positive with higher trade volumes.
Mr Ghulam Rabbani, one of the Directors of Karachi Cotton Association (KCA), said that fine lint fetched Rs3,200 per maund, slightly higher prices due to growing demand from spinning sector.
Few future deals for all kinds of lint were inked at around Rs3,125 per maund to Rs3,150 per maund. Around 200 bales of southern Punjab were traded at Rs3,050 per maund and Rs3,120 per maund and another 200 bales of upper Sindh at Rs3,150 per maund.
On Tuesday, market slipped further by Rs25 per maund and cotton prices stood at Rs3,150 per maund.
Market analysts say that since August cotton prices in the domestic market dropped by 18 percent from its record level of Rs4,350 per maund and it can be attributed to arrival of new cotton crop in the market. However, current lint prices are quoted at around Rs3,200 per maund, which is nearly 22 percent high when compared to last year's level.
Nearly 200 bales of Mirpurkhas exchanged hands at Rs2,850 per maund to Rs2,900 per maund and 200 bales of upper Sindh exchanged hands at Rs3,150 per maund.
Another blow came when spot rates for cotton plunged further by Rs150 per maund on Wednesday and was declared at Rs3,000 per maund.
Currently, local cotton prices are hovering at around Rs3,000 per maund, but fine lint remained on the higher level on back of demand from the leading users. Around 200 bales of southern Punjab changed hands at Rs2,950 per maund to Rs2,960 per maund; some 200 bales of upper Sindh changed hands at Rs3,000 per maund and 200 bales of Mirpurkhas were traded at Rs3,025 per maund.
On Thursday, spot rates stood at Rs2950 per maund. Business in local market observed in small volume. 3000 bales traded in Rajanpur at Rs3000 per maund; 3000 bales of Chichawatni sold at Rs3000; another 1000 bales of Jalalpur changed hands at Rs3000; near about 2200 bales of Bahawalpur finalized at Rs3000; around 1500 bales of Sultanabad sold in Rs2700 and Rs2800; while in another contract 1600 bales of Shahdadpur sold at Rs2800 and Rs2900 per maund.
The spot rate at KCA on Friday remained firm and strong, with the settlement prices stood at Rs2950 per maund, as previous day. Very few trade deals were struck in local market. All whatever was sold or bought remained in a range of Rs3000 to Rs3100 per maund.
According to Mr Rabbani, majority of the sellers stopped offering their stocks on lower price, as reports of TCP joining the league is in the air to provide relief to the sector.
The spot rate at KCA on Saturday remained firm and strong. The settlement price was declared at Rs2950 per maund, similar to previous day. Whatever volumes were sold amid thin transactions, the price stood with in the range of Rs3000 to Rs3100 per maund.
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Fibre2fashion News Desk - India