Cotton trading continue at slow pace, price reduced by Rs.50

With buyers reluctant to enter into big deals trading at Pakistan cotton market continued at slow pace. Only around 2,500 bales from new crop have so far been sold by ginners which were mostly lifted by Punjab spinners. Around seven to eight ginning units have started operating in Sindh and five in Punjab. However, all these ginneries are getting raw cotton supplies from lower Sindh where crop normally matures earlier than other cotton-growing belts of the country. Presently, the new crop phutti (seed cotton) is priced at around Rs3,250 to Rs3,300 per 40 kg from Sindh, and Rs3,100 to Rs3,150 from Punjab. According to market reports, the Sindh variety cotton is being traded in the range of Rs6,350 to Rs6,400 and the Punjab quality between Rs6,600 and Rs6,670 per maund. The government has fixed cotton production target for current season (2014-15) at 15.1 million bales. However, it all depends on monsoon rains and floods as last year standing cotton crop was badly damaged. The main reason for slow off-take of cotton yarn is poor demand from China where currency devaluation disturbed import parity. The Karachi Cotton Association (KCA) reduced its spot rates by Rs50, to Rs6,750 per maund. Trading on ready counter was slow and the following deals in new crop took place: 400 bales, Golarchi, at Rs6,400; 600 bales, Tando Mohammad Khan, at Rs6,400 to Rs6,600; 600 bales, Mirpur Khas, at Rs6,425 to Rs6,450; and 400 bales, Shahdadpur, at Rs6,500. While, following were Tuesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL. On the global front, the New York cotton market recouped last week losses and barring maturing July contract all other deliveries ended with fresh gains.