Spot rates remain stable at cotton market

 Fine lint continued to remain in strong demand amid firm spots rate at the Karachi Cotton Association (KCA), traders said on Wednesday.

A senior trader, Ghulam Rabbani said the spot rates at KCA stayed firm and the settlement was declared at Rs 3,300 per maund and several deals in upper Sindh and other areas changed hands at Rs 3,400 per maund and Rs 3,450 per maund.

He said around 100 bales changed hands in Rahimyar Khan at Rs 3,500 per maund while leading mills and spinners remained busy in making deals for fine lint on slightly higher prices during the trading session. He said around 600 bales changed hands in Karachi at Rs 3,550 per maund and in Rahimyar Khan and Bahawalpur lint was traded at Rs 3,400 per maund.

He said private sector commercial exporters also made deals for lint of all qualities during the trading session. He said in international market last night, mill buying weakened considerably in response to yesterday’s price gains registered in New York. The jump in cotton and other markets suggests that fund traders may be coming back into the soft commodities with the solid buying witnessed a day earlier.

New York futures market May 2008 closed at 71.94 cents per pound with a loss of 86 points, while July 2008 closed at 75.49 cents per pound with a loss of 86 points. Total volume traded under cover of May 2008 was 18,827 contracts, while the volume traded under cover July 2008 was 17,556 contracts. The Cotlook A index settled at 76.05 cents per pound with an increase of 110 points.

The USDA reported as of April 6, that 7 percent of the US crop planted versus 6 percent last year and 7 percent on average. The may cotton options will expire on Friday, April 11. A Dow Jones survey showed that exceptions for 2007-08 US production of 19.17 million bales up from 19.03 million bales a month earlier. staff report