June 26, 2012

Pakistan's cotton market stays stable

The Karachi cotton market recorded a steady trend on Saturday (June 23), while spot rate remained unchanged, said a dealer.

The spot rate stood unchanged at PKR6,000 (US$63.5) per maund (37.324 kilogrammes) and PKR6,430 (US$68) per 40 kilogrammes, while ex-Karachi rate remained firm at PKR6,130 (US$65) per maund and PKR6,560 (US$69) per 40 kilogrammes after addition of PKR130 (US$1.38) as upcountry expenses.

An analyst said that cotton stocks were about to end and the arrival of the new lint would start soon. "Currently, last year's lint is being traded, while two ginning factories have started operations in Haroonabad and Burewala," he said.

Nearly six to eight trucks of cottonseed are going to Punjab on a daily basis, he said. Haroonabad factories have prepared 500 bales from the new crop, but those are not traded yet, he added.

New York cotton market recorded mix trend on Friday (June 22). July futures declined by US$0.04 to US$0.7417 per pound, while October futures increased by US$0.0205 to US$0.6930 per pound. All other futures also increased by over US$0.01 per pound.

Due to decline in stocks, Karachi cotton market recorded dull trading of 1,100 bales in between PKR5,000-6,300 (US$53-67) per maund.

Shahdadpur's 313 bales and 500 bales of Sahari were each traded at PKR5,000 (US$53) per maund, 100 bales of Burewala at PKR5,800 (US$61) per maund and 200 bales of Yazman Mandi were sold at PKR6,300 (US$67) per maund on credit.