Market
Watch
Cotton prices up on US
supplies disruption
KARACHI, Sept 14: Cotton market on Friday showed firm trend as
ginners raised their asking prices followed by predictions
that the local lint will be expensive on the world trading
centres owing to disruption in supplies from the US.
The other contributory positive factor was Trading Corporation
of Pakistan's (TCP) entry into the cotton trade apparently to
support the market. It purchased 500 bales from a Mirpurkhas
ginner at the official rate of Rs.1,830.00 per maund, opening
an alternate selling channel for the ginners.
The major US markets are closed since last Tuesday after the
attack on World Trade Center and Pentagon followed by a
massive human and financial losses in the aerial raids.
Dealers said being one of the major suppliers of lint cotton
to the world suspension of trading on the New York Cotton
Exchange for an indefinite period users anticipate pressure on
supplies and the consequent rise in prices. However, there is
no official word from the leading exporters on the developing
world cotton situation, indications are that they are watching
the developments before obliging their foreign trading
partners, they added.
"Spinners were active buyers fearing further increase in local
prices, but unlike the previous ginners appear to be a bit
choosy and were not in a haste to unload their stocks", claims
a floor broker.
The general outlook of the developing cotton situation,
notably after the events in the US, is said to be bullish and
this idea was reinforced by the ginners reluctance to go for a
"big kill" at the offered rates, he says.
A leading exporter was, however, of the view that it is too
early to speculate that the US exporters may lose their
competitive edge on the world cotton markets after the current
devastations, they are capable of sustaining massive losses as
they have an enormous funds at their disposal.
Moreover, hedging facility at the New York Cotton Exchange
generally protect their long-term interest in the major world
selling points during the interim period or jolts caused by
some unseen events, dealers said.
Official spot rates were quoted higher by Rs.25.00 per maund,
while in the ready section most of the deals were done well
above them.
Ready off-take was modest totalling about 4,000 bales,
the following being some of the notable deals: 300 bales,
Tando Adam at Rs.1,800.00, 200 bales,
Sanghar at Rs.1,780.00, 200 bales, at Rs.1,750.00, 500
bales,
Mirpurkhas at Rs.1,830.00, 200,
Tando Adam at Rs.1,775.00, 800 bales,
Sanghar at Rs.1,800.00, 400 bales,
Khipro at Rs.1,800.00, 300 bales,
Shahdadpur at Rs.1,800.00, and 200 bales,
Nayabad also at Rs.1,800.00.
September 15,2001
Courtesy Daily
Nation
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