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Cotton market firm on active demand
KARACHI, Sept 15: Cotton market on Saturday gave another
improved performance on active demand but prices remained
largely range-bound as spinners were not inclined to disrupt
the status quo.
News from the central Punjab cotton market were not that
encouraging as stray lots changed hands around Rs1,750.00 for
quality reasons but the lint from the lower Sindh remained
expensive as later in the evening most of the deals were
finalized around Rs1,850.00 per maund.
Although spot rates were further marked up by Rs25.00 per
maund, most of the deals in the ready section were finalized
slightly above them, indicating that a judicious equilibrium
is being maintained between the supply and demand, dealers
said.
An idea of a firm market may well be had from the fact that a
strong rumour about a possible ban on textiles by the US
failed to dampen the underlying sentiment, they added.
There were rumours in the market that America may ban textile
imports from here if its demands including the air and land
facility for strikes against Afghanistan are not met.
The US is one of the largest buyers of local textiles
totalling about $2.5 billion and any major disruption could
push the prices of allied products including cotton and yarn
substantially lower, they fear.
However, spinners were not inclined to take a breather and
continued cover positions against their forward sales of
cotton yarn discounting the rumours of a possible ban, they
added.
Floor brokers said the heating up of the local market after
the attacks on the US trading centres is understandable as
closure of the New York Cotton Exchange though temporarily
could mean bullish news for the rest of the world.
Meanwhile, reports coming from the cotton yarn markets are not
that encouraging as prices remained on the lower side partly
because of lack of fresh export orders from the leading
importers, not-ably from the Far East, they added.
Ready offtake was light as spinners were not inclined to chase
prices further higher and purchased only those, which
conformed to the quality and price standards. About 3,000
bales changed hands as under: 1,000 bales, Shahdadpur at
Rs1,825.00, 200 bales at Rs1,850.00, 100 bales, Tando Adam at
Rs1,825.00, 200 bales, Sanghar at Rs1,815.00, 200 bales, Kot
Ghulam Muhammad at Rs1,800.00, 200 bales, Mirpurkhas at
Rs1,775.00 and 200 bales, Bahawalnagar at Rs1,750.00.
September 15, 2001
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