Activity picks up on cotton market as dollars rise attracts exporters

KARACHI (January 27 2010): Activity improved on the cotton market on Tuesday as dollar's climb attracted the exporters to make forward buying, dealers said. The Karachi Cotton Association (KCA) official spot rate was unmoved at Rs 4,600, dealers said. In the ready business activity showed visible improvement as more than 15,000 bales of cotton changed hands between Rs 4575-4750.

Phutti prices in both the Punjab and Sindh were same at Rs 2050-2350, they added. Some leading analysts said that the mills and exporters both came ahead to finalise the deals at the present levels. It is most likely that the exports of textile items may show further betterment due to good production this year, they said.

Beside, some 0.4 million bales of cotton was imported till December 2009 from India and other countries, so it can be expected that exports of textile goods would improve in the coming days, they said. Now when the demand is picking up, it is likely that the ginners may start raising the asking prices, they said. On Monday the NY cotton futures finished near an eight-week low, dogged by another round of technical sales amid predictions that the weak tone meant lower prices yet in the days ahead, brokers said.

The key March cotton contract dropped 1.11 cents to finish at 69.96 cents per lb, dealing from 69.81 to 71.65 cents. It was the lowest level for cotton on the spot daily charts since December. 2, 2009. Volume traded in the March contract hit 11,738 lots at 2:33 pm EST (1933 GMT).

THE FOLLOWING DEALS WERE REPORTED: 200 bales of cotton from Sanghar sold at Rs 4575, 200 bales from Tando Adam at Rs 4625, 400 bales from Dadu at Rs 4575, 1000 bales from Shahdadpur at Rs 4650, 400 bales from Kuzdar at Rs 4600, 258 bales from Maksuda at Rs 4675, 2000 bales from upper Sindh at Rs 4700-4750, 1200 bales from Khan Pur at Rs 4750, 1000 bales from Noor Pur Nauranga at Rs 4700, 4000 bales from Taatepur at Rs 4600, 1600 bales from Rajan Pur at Rs 4600, 400 bales from Haroonabad at Rs 4575, 1200 bales from Sadiqabad at Rs 4700-4750 and 1200 bales from Rahim Yar Khan at Rs 4725.

KARACHI (January 27 2010): Activity improved on the cotton market on Tuesday as dollar's climb attracted the exporters to make forward buying, dealers said. The Karachi Cotton Association (KCA) official spot rate was unmoved at Rs 4,600, dealers said. In the ready business activity showed visible improvement as more than 15,000 bales of cotton changed hands between Rs 4575-4750.

Phutti prices in both the Punjab and Sindh were same at Rs 2050-2350, they added. Some leading analysts said that the mills and exporters both came ahead to finalise the deals at the present levels. It is most likely that the exports of textile items may show further betterment due to good production this year, they said.

Beside, some 0.4 million bales of cotton was imported till December 2009 from India and other countries, so it can be expected that exports of textile goods would improve in the coming days, they said. Now when the demand is picking up, it is likely that the ginners may start raising the asking prices, they said. On Monday the NY cotton futures finished near an eight-week low, dogged by another round of technical sales amid predictions that the weak tone meant lower prices yet in the days ahead, brokers said.

The key March cotton contract dropped 1.11 cents to finish at 69.96 cents per lb, dealing from 69.81 to 71.65 cents. It was the lowest level for cotton on the spot daily charts since December. 2, 2009. Volume traded in the March contract hit 11,738 lots at 2:33 pm EST (1933 GMT).

THE FOLLOWING DEALS WERE REPORTED: 200 bales of cotton from Sanghar sold at Rs 4575, 200 bales from Tando Adam at Rs 4625, 400 bales from Dadu at Rs 4575, 1000 bales from Shahdadpur at Rs 4650, 400 bales from Kuzdar at Rs 4600, 258 bales from Maksuda at Rs 4675, 2000 bales from upper Sindh at Rs 4700-4750, 1200 bales from Khan Pur at Rs 4750, 1000 bales from Noor Pur Nauranga at Rs 4700, 4000 bales from Taatepur at Rs 4600, 1600 bales from Rajan Pur at Rs 4600, 400 bales from Haroonabad at Rs 4575, 1200 bales from Sadiqabad at Rs 4700-4750 and 1200 bales from Rahim Yar Khan at Rs 4725.