Trading remains dull at cotton market

Daily  Times May 23, 2009

KARACHI: Trading remained dull at the Karachi cotton market on Friday while the spot rate and physical prices were strong.

The spot rate of KCA stayed stable at Rs 3,700 per maund and due to raw quality of the produce, the leading buyers remained reluctant to go for long-term deals, a trader at KCA, Ghulam Rabbani said.

He said leading ginners withholding fine lint were confident about the future price level, which they viewed above Rs 3,800 per maund in the next coming sessions.

He said in the domestic market hot topic of the day was the new crop, which was about to arrive in the market besides dollar-rupee import parity.

The USDA weekly US export sales were 141,000 running bales, up from last week, but down 11 percent from the prior 4-week average. Major buyers were Thailand 24,800 bales, China 21,900 bales, Turkey 15,300 bales, Colombia 14,900 bales, Taiwan 12,100 bales, Mexico 11,200 bales, South Korea 8,800 bales and Malaysia 7,800 bales. Net sales of 58,100 running bales for delivery in 2009-10 were reported. Pima sales were 11,500 running bales and shipments were 4,200 running bales.

According to Cotlook, an official notice, jointly published by the China National Cotton Exchange (CNCE) and the China National Cotton Reserves Corporation (CNCRC), indicates that 1.5 million tonnes of state reserves will be sold on the CNCE’s electronic trading platform.

New York futures market July 2009 closed at 56.78 cents per pound with a loss of 37 points and the volume traded was 6,082 contracts, the October 2009 closed at 59.05 cents per pound with a loss of 42 points with a traded volume of 177 contracts.

While December 2009 closed at 60.04 cents per pound with a loss of 32 points with a volume of 1,913 contracts traded under the December cover. The Cotlook A index declared settled at 62.40 cents per pound with a gain of 95 points.

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