| Market
Watch
Cotton market
lacks buying interest
KARACHI, Jan 14: Trading on the cotton market on Monday lacked
normal buying interest as spinners kept to the sidelines most of
the time, awaiting some positive developments on the export
front.
Stray lots, however, did change hands mostly at the lower rates
as some of the ginners were not inclined to hold long position
amid falling mill demand.
"Both the ginners and the spinners appear to be the victim of
unsold stocks," brokers said and added while the former are
holding an unsold stock of over 2 million bales, the latter
claim inventories of unsold cotton yarn are rising each day in
the absence of strong foreign demand.
While the ginners are awaiting the entry of the TCP to bail them
out from the prevailing crisis of production glut, the spinners
are out to convince their traditional partners to resume annual
buying, they added.
Floor brokers said the market might continue to rule sluggish
until export of finished goods picks up and spinners resume
normal covering operations. But spinners say in addition to
falling foreign demand for the cotton yarn, the other negative
factor is the lower prices being offered by the foreign buyers
apparently in line with the local lint prices.
Although spinners and mills still need about 2 million bales to
see the current financial year ending Aug 31, to see through,
pressure on their liquidity owing to slow export has limited
their covering purchases, they added.
"Prices could further ease from the current level if mill demand
remains shy during the coming weeks also, but there is no
possibility of a price crash owing to the presence of the TCP,"
they say.
Exporters have resumed their covering operations on a modest
scale but their purchases are too small to give the market
needed psychological push, some dealers say. However, reports
that an exporter has purchased 400 bales of fine type from the
upper Sindh ginnery reflects that foreign demand for the medium
staple variety is also picking up.
At the weekend session, late on Saturday evening, a business of
about 12,000 bales was reported, the following being some the
notable deals:
SINDH TYPE: 3,000 bales from Gothki, Dharki and Mirpur Mathelo
sold at Rs1,725 to Rs1,750, 400 bales, Dharki was purchased by
an exporter at Rs1,750 and 1,000 bales of Qazi Ahmed at Rs1,650.
PUNJAB VARIETY: 1,000 bales of Sadiqabad at Rs1,700 to Rs1,750,
1,000 bales, Rahimyar Khan at Rs1,700, 1,000 bales, Bahawalpur
at Rs1,700 to Rs1,725, 2,500 bales, Yazman at Rs1,750, 600
bales, Khanpur at Rs1,750, 200 bales, Bagho Bahar at Rs1,750,
200 bales, Sahiwal at Rs1,525 and 400 bales of Mureedwala at
Rs1,550.
| The following
are Monday's new crop Karachi Cotton Association (KCA)
official spot rates for local dealings in Pak rupees for
base grade 3 staple length 1-1/32" micronair value between
3.8 to 4.9 NCL. |
|
Rate for |
Exgin price |
Ex-gin price
including Sales Tax |
Upcountry Expenses |
Spot rate ex-Karachi
including Sales Tax @ 15% |
| 37.32 kgs |
1,675 |
1,926.25 |
50 |
1,976.25 |
|
Equivalent |
| 40 kgs |
1,795 |
2,064.25 |
50 |
2,114.25 |
Courtesy Dawn January 15, 2002 |
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