Market
Watch
Spinners
continue to build up long position
KARACHI: Cotton market passed
through another brisk trading session on Wednesday as spinners
continued to build up long positions at the current levels amid
fears of price flare-up.
"The entry of the private sector exporters and the TCP has added
new dimension to the cotton trade as spinners, who were very
choosy a couple of days earlier and enter the market at will,
are not inclined to take even a technical breather," floor
brokers said.
Although both the TCP and the private sector exporters may not
be in a position to match the spinners tally, they are not
inclined to take the risks of increase in prices and remained
active buyers for the second session in a row, lifting about
50,000 bales, they added.
However, exporters appear to be more active for the last couple
of sessions but most of them are purchasing inferior lots
between Rs1,475 and Rs1,550. But one thing is certain that
leading among them have secured a fair export business after
things are settling down on the export front and importers have
started opening letters of credit.
During the Afghan war, foreign buyers stayed on the sidelines
for about two months and have just started new year buying and
if one goes by their buying intentions, the export figures could
swell to half a million bales, exporters said.
It is, however, too early to assume that prices could rise from
the current level or not despite a possibility of a combined
covering operation by the TCP, spinners and exporters, dealers
said.
Spinners and mills' major thrust on the good quality lint from
the southern Punjab ginneries for which they are willing to pay
a bit more as was reflected by the day's total turnover.
Meanwhile, ginners appear to be a bit happy over the developing
situation sans any further increase in prices but their long
unsold position are getting the needed downward push.
Ready offtake was active as till late in the evening about
15,000 bales changed hands, the following being some of the
notable deals:
SINDH VARIETY: 1,500 bales of Sanghar at Rs1,550 to 1,575 and
135 bales of Sultanabad at Rs1,485, purchased by an exporter.
PUNJAB TYPE: 1,000 bales of Alipur at Rs1,550, 1,000 bales,
Rahimyar Khan at Rs1,725, 1,000 bales, Khanpur at Rs1,725, 4,006
bales, Rajanpur at Rs1,700, 500 bales, Sadiqabad at Rs1,700, 400
bales, Lodhran at Rs1,725, 1,000 bales, D.G. Khan at Rs1,550 to
1,650, 500 bales, Bahawalnagar a Rs1,550, bought by exporters,
400 bales, Kabiwala at Rs1,700, 400 bales, Gojra at Rs1,560 and
100 bales, at Rs1,250.
| The following
are Wednesday'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 |
1,650 |
1,897.50 |
50 |
1,947.50 |
|
Equivalent |
| 40 kgs |
1,768 |
2,033.20 |
50 |
2,083.20 |
Courtesy Dawn January 24, 2002 |
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