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Active buying on cotton market
KARACHI, April 28:
Cotton market on Tuesday showed firm trend as
spinners were not inclined to take even a
technical pause and lifted all the lots offered by
the ginners at the higher asking prices.
"The market is heating up as supply and demand
factors appear to be now at work", says a broker
adding "spinners and mills are out to grab the
floating stock lying with the ginners irrespective
of asking prices".
The market seems to be heading to its last year's
mid-December price level of well over Rs3,000 per
maund as the perception of expensive foreign lint
has left mills with no option but to rely on the
local stuff at least for the near-term, he adds.
Some of the deals for fine lots were finalized at
the two-month peak level of Rs3,050 and some other
ginners believe "now is their turn to set the
future market direction". Having fair crop idea,
spinners are not inclined to await decline in
prices as ginners are now in a driving seat and
are in a position to sell their unsold stock at
their asking prices.
Although final crop figures up to May 1, are still
about a week away, but spinners say the figure of
10m bales may not be touched and they have to
bridge the supply gap through further imports.
According to official sources leading spinner
groups have so far imported a million bales and
more consignments are claimed to be on their way.
"The lint import figure is expected to touch the
high mark of 2m bales in the absence of a buffer
stock", cotton analysts said adding that "it may
add to the production cost of textiles and the
allied export problems".
Because of a massive Rs55bn expansion and
modernization programme carried out by the textile
industry during the last couple of years, the mill
intake of lint had soared to 12m bales plus as
against the local production of average 10m bales,
they said.
Official spot rates were held unchanged but may be
upped on Wednesday in line with higher rates at
which physical business was finalized. Ready
offtake was moderately active as till late in the
evening about 8,000 bales changed hands, the
following being some of the notable deals:
SINDH TYPE: 1,000 bales, Bucheri at Rs2,850 and
1,000 bales, Nawabshah also at the same rate.
PUNJAB VARIETY: 2,000 bales, Burewala at Rs3,000
to Rs3,025, 200 bales, Kachha Khou at Rs3,025, 200
bales, Khanewal at Rs3,050, 500 bales, Ahmedpur
East at Rs3,000 and 400 bales, inferior quality,
Gojra at Rs2,100.
The following are Tuesday'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 2,850 3,277.50 50 3,327.50
Equivalent
40 kgs 3,054 3,512.10 50 3,562.10.
The DAWN
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Pakissan.com; Advisory Point
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