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Cotton easy amid thin trading
KARACHI: The cotton market remained bearishly inclined on
Wednesday due to the absence of buying interest. The spinners
took a breather after Tuesday's hectic buying.
Brokers said that the withdrawal of spinners was just a
tactical move to intensify panic selling by ginners. The
Cotton Crop Assessment Committee reiterated its earlier
assertion that the cotton output this year would total 10.4
million bales which also
triggered heavy selling in the absence of buyers.
Only 500 bales of inferior quality cotton were sold at Rs1625
on exporters' account. On Tuesday over 15000 bales had changed
hands at prices ranging between Rs1615 and 1800. The steep
decline in prices has led to the emergence of exporters'
demand though it is still very modest. In fact, brokers rule
out the possibility of any heavy export of lint this year
because of slump in world cotton market because of supply
outstripping demand. Even the textile industry has been hit
hard by the Afghan war and it will take months to regain a
foothold in the world market. Heavy stocks of yarn are
reportedly lying piled up in the spinning mills confronting
them with serious resource crunch. This is partly responsible
for slow-down in demand.
Official spot rate remained unchanged at Rs1725. Ready
off-take stood at 500 bales of Sindh cotton including 400
bales Sanghar sold at Rs1625 and 100 bales Shahdadpur at
Rs1625. Tuesday's late evening business included: Sindh cotton
1600 bales Moro sold at Rs1700, 200 bales Sultanabad at
Rs1450, 2600 bales Sanghar at Rs1615, 300 bales Sanghar at
Rs1650, 1000 bales Sinjoro at Rs1650, 600 bales Naushehro
Feroze at Rs1650, 500 bales Nawabshah at Rs1650, 400 bales
Chundko at Rs1725, 400 bales Biria Road at Rs1725, 400 bales
Kot Diji at Rs1725 and 200 bales Kotla Pathan at Rs1775;
Punjab Cotton 500 bales Khanpur sold at Rs1800, 800 bales
Chishtian at Rs1600, 1500 bales Sadikabad at Rs1750/1800, 1000
bales Rahimyar Khan at Rs1750/1775, 1000 bales DG Khan at
Rs1600/1650 and 2000 bales Bahawalpur at Rs1700/1785.
Courtesy The News January 10, 2002 |
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