Firmness prevailed on the cotton market on Monday as mills and exporters continued buying to meet the urgent needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was kept unchanged at Rs 7450, they said. In the ready business, some 16,000 bales of cotton changed hands between Rs 5350-7600, they said.
Seed cotton prices in Sindh were at Rs 3350-3400, in the Punjab prices were at Rs 3150-3400, they added. Market sources said that the supplies short of demand caused sharp rise in the rates and it looks that this fact would dominate the market in the coming days.
The ginners may not lower the prices even phutti arrival improves, they added. Exporters' presence is also an adding factor behind the surge in the rates Profit-taking is also a factor which is very much obvious these days, they said. The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly arrival figure, that is about 4.17 million bales, showing a decline of nearly 0.8 million bales of cotton against the last year figure at around 5 million bales.
According to reports, China's benchmark cotton futures in Zhengzhou fell by their daily limit on Monday, chasing sharp falls in the US market in the previous session, which struck a record high on Friday and then fell by its daily limit. Chinese cotton futures for March delivery touched their downside limit at 23,635 yuan at the open before recovering to 24,280 yuan per tonne, down 1.38 percent by 0216 GMT. "The prices are dragged down by overseas (US) cotton prices. But (Zhengzhou) prices may pick up again, there is still plenty of capital that's bullish on cotton," said Peng Juan, an analyst with International Futures Co Ltd based in Shenzhen.
In the meantime, Turkmenistan, one of the world's main cotton exporters, harvested 1.0 million tonnes of raw cotton this year, down from the original forecast of 1.05 million tonnes, a government official has said. The secretive Central Asian state has so far reported no actual data for its 2009 cotton crop. In 2008, it gathered 1.0 million tonnes of cotton, compared with 950,000 tonnes in 2007. According to the National Cotton Council of America, Turkmenistan exported 1.1 million bales of cotton in the 2009 marketing year, making the desert nation the world's sixth-largest cotton exporter.
The following deals were reported: 600 bales of cotton from Sultanabad sold at Rs 7450, 2000 bales from Nawabshah at Rs 7500, 2000 bales from SDU at Rs 7500, 400 bales from Sarhari at Rs 7500, 600 bales from Tando Adam at Rs 7500, 400 bales from Moro at Rs 7550, 2000 bales from Khair Pur at Rs 7500/7550, 1600 bales from Upper Sindh at Rs 7550/7600, 400 bales from Dera Gazi Khan at Rs 7500, 600 bales from Fort Abbas at Rs 7500, 600 bales from Chichawatni at Rs 7400/7425, 600 bales from Kabirwala at Rs 7400, 800 bales from Mian Channu at Rs 7400, 400 bales from Gaggo Mardi at Rs 7400, 400 bales from Vehari at Rs 7400, 600 bales from Haroonabad at Rs 7350/7400, 1400 bales from Burewala at Rs 7400/7425, 600 bales from Khanewal at Rs 7400, 600 bales from Rajan Pur at Rs 7500, and 600 bales from Bahawal Nagar at Rs 7400.