KARACHI (November 21, 2010) : Some deals were seen on the local cotton market amid post Eid-holiday session on Saturday, dealers said. The Karachi Cotton Association (KCA) left the spot rate unchanged at Rs 8500. In the meantime, seeds cotton prices in Sindh and Punjab were at Rs 3900-4000, they said.
In ready business, above 8000 bales changed hands at Rs 9000, they added. According to the market sources, despite the slow arrival of phutti, there was buying interest from spinners indicating that prices may show firmness or go up in the coming days. The growers after disposing of around 75 percent of their crop are now holding back to get better return, they said.
Some experts said that the widening gap between production and consumption of cotton will further put pressure on country's foreign exchange because higher quantity of cotton will have to be imported to fill the gap. Cotton exporters feel that last year country' produced around 10.40 million bales and imported around 2.5 million bales but this year it appeared that quantity exceeding three million bales would have to be imported.
On Friday the US cotton futures ended down by their daily limit on Friday after another move by China to slow its economy led to further liquidation before the weekend, brokers said. The benchmark March cotton contract on ICE Futures US closed down 6.00 cents, or 4.65 percent, at $1.2315 per llb. The following deals were reported : 400 bales of cotton from Tando Adam sold at Rs 9000, 400 more bales from Shahdadpur, 1600 from Nawabshah, 1000 bales from Upper Sindh, 3000 bales from Bahawalpur and 2000 bales from Ahmed Pur East all sold at Rs 9000, they said.
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