Pakistan: Trade activity decreased at the Karachi Cotton Exchange
Karachi: Trade activity decreased at
the Karachi Cotton Exchange on Thursday, while spot rates remained unchanged. The spot rates stood firm at
Rs6,400/maund (37.324kg) and Rs6,859/40kg. Ex-Karachi rates also remained
unchanged at Rs6,545/maund and Rs7,014/40kg after an addition of Rs145 and
Rs155 as upcountry expenses, respectively.
An analyst said the market is down after fog hits Punjab. “The market is under
pressure and prices have come down by Rs300 in the local market,” he added. Mills have made contracts for the
import of 1.6 million bales from the US, Brazil, South Africa and Central Asian
countries. A total of 20 transactions were recorded of around 13,000 bales at a
price of Rs6,050 to Rs6,700/maund. Notable deals were recorded from Tando Adam,
Daharki, Saleh Pat, Khairpur, Liaquatpur, Rahimyar Khan and Taunsa.With the US autumn harvest largely through,
and South American weather threats evaporating, export news is taking a greater
profile in many ag markets.
Certainly, on
Thursday, price moves looked largely in line with export fortunes.Cotton futures for December managed gains,
rising by 0.5% to 69.18 cents a pound, their best finish in three weeks, after
the US Department of Agriculture unveiled US export sales of 506,700 running
bales of upland cotton last week, plus 18,100 running bales of pima.
Ahead of
the data, Louis Rose at Rose Commodity Group said that “an analysis of
pertinent data and metrics suggests to us that sales are likely to be close to,
or perhaps a bit higher, versus last week’s net total of around 232,000 running
bales”.But sales at the level revealed by the USDA were well ahead of
expectations, and the highest since January 2015.The rise in
cotton price might have been stronger were it not for the weak pace of actual
shipments, of a little over 100,000 running bales upland cotton and pima
combined – less than one third of the level needed to meet the USDA forecast
for the whole of 2017-18.
Source: Business Recorder, Pakistan
Friday, 17 November 2017