Thin business on cotton market due to soaring rates

karachi  (january 30, 2011) : trading activity was slow on the cotton market on saturday as prices hit the all-time high level mainly due to sharp rise in the world market and short crop locally, dealers said. the karachi cotton association (kca) spot rate was unchanged at rs 10,800, they said.
phutti prices in sindh and punjab were unchanged at rs 4200-5000, they said. in the ready business about 5,000 bales of cotton changed hands between rs 10,400-12,000, they added. market sources said that the mills kept on the sidelines owing to higher rates but they are still expecting that the prices may come down in the coming days.
the ginners, on the other hand, were not ready to lower the asking prices due to shortage of crop. in the meantime, the pakistan cotton ginners association (pcga) meeting will be held on sunday with the prime minister in quetta to discuss about the 3.5 percent withholding tax on agriculture products, they said.
on friday the us cotton futures closed sharply lower on profit-taking and end-of-the-week liquidation as players cashed in their gains after the market hit new record highs this week, analysts said. stumbling grains prices and fears the unrest in egypt may lead to macroeconomic weakness also weighed on fibre contracts, they said. the key marchcotton contract on ice futures us fell 4.64 cents to finish at $1.6475 per lb, trading from $1.6451 to $1.711.
total volume stood around 23,700 lots, about a quarter above the 30-day norm, thomson reuters preliminary data showed. the following deals were reported : 400 bales of cottonfrom upper sindh sold at rs 11500, 200 bales of cotton from upper sindh 12000, 400 bales of cotton from faqirwali at rs 10400, 600 bales of cotton from haroonabad at rs 10400-11000, 400 bales of cotton from layyah at rs 10800-11000, ?800 bales of cotton from mian channu at rs 11000, 400 bales of cotton from mian wali at rs 11000, 800 bales of cottonfrom vehari at rs 11000, 400 fazil pur at rs 11200 and 400 bales of cotton from khanewal sold at rs 11600, they said.

(Source: http://www.brecorder.com/news/cotton-and-textiles/pakistan/1150019:thin-business-on-cotton-market-due-to-soaring-rates.html?hl=cotton)