KARACHI (December 30, 2010) : Prices were stable on the cotton market on Wednesday in process of modest trading, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9000, they said. Seed cotton prices in Sindh and Punjab followed the same pattern and did not show any change at Rs 3,900-4,200, they said.
In ready business, approximately 13,000 bales of cotton changed hand between Rs 9000-9400, they added. According to the market sources, mills are active but not making any deals in a hectic way. The ginners were also relaxed because they know that prices would maintain firm trend due to short crop, they said.
Besides, China will soon issue an additional 1.7 million tonnes of cotton import quotas in addition to 894,000 tonnes of low-tariff quotas, bringing total quotas for 2011 to 2.6 million tonnes, an industry website reported. ON Tuesday the US cotton futures closed lower on light investor sales as the market remained trapped in a range, with many big investors expected to stay away for the rest of the year, analysts said.
The key March cotton contract on ICE Futures US fell 1.41 cents to finish at $1.4435 per lb, moving from $1.44 to $1.4949. Volume was seen at 7,000 lots, Thomson Reuters preliminary data showed. That would be just above the year low of 5,895 lots traded on June 25, according to exchange data. Cotton is the third-best performer in the Reuters-Jefferies commodity index so far this year, up over 76 percent as the market reached levels not seen since the US Civil War in the 19th century.
The following deals were reported: 1000 bales of cotton from Shahdad Pur sold at Rs 9000, 1000 bales of cotton from Nawabshah at Rs 9000, 2000 bales from Khair Pur at Rs 9200/9300, 3000 bales from Upper Sindh at Rs 9300, 800 bales from Khan Pur at Rs 9400, 1200 bales from Rajan Pur at Rs 9300, 2000 bales from Noor Pur at Rs 9300, 800 bales of cotton from Rahim Yar Khan at Rs 9300, 200 bales from Hasil Pur at Rs 9000 and 200 bales from Bahawal Pur at Rs 9000, they said – Brecorder