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Buying gets slow on cotton market
KARACHI, April 23:
Modest trading activity was witnessed on the
cotton market on Thursday as some of the leading
spinners remained active buyers at the prevailing
rates.
The major buying interest remained confined to
fine lots as leading spinners and mills lifted all
the lots offered by ginners between Rs2,850 to
Rs3,000 per maund, brokers
said.
The interesting feature was that most of the lots
in trade were well above the 1,000 bales figure,
reflecting the spinners are now no more inclined
to keep to the sidelines
hoping fall in prices, they said.
"The lower unsold stocks and perception of a total
crop figure of below 10m bales have forced the
spinners to cover their forward positions amid
fears of supply-based price
flare-up," dealers said.
Unlike the previous sessions about 10,000 bales
are now changing hands daily but mostly below the
Rs3,000 level as the ginners have also realized
predictions of further
increase in prices at the fag-end of the season
may not prove correct.
According to market sources, the mills were out to
grab the floating stocks to meet their export
commitments for the last quarter of the current
year ending June 30, as
expensive imports in the backdrop of a highly
volatile world prices, leading among them were not
inclined to take a risk as far as their export
commitments were concerned.
"Most of the spinners have secured large export
orders for higher counts of cotton yarn for which
they need fine lots at least with a medium staple
length," brokers said,
adding that is why bulk of the business is
confined to premium lots.
Reports from the New York cotton market are highly
disturbing, having negative impact on the textile
exports from Pakistan as most of the export deals
are finalized based
on the average price of New York cotton futures
both for lint and cotton yarn, some spinners
claim.
New York cotton futures on Wednesday rose sharply
by 1.95 cents per lb at 63.45 cents per lb for the
ruling May delivery, while the forward July was
quoted higher by 0.77
cents at 62.61 cents per lb. There was, however,
no change in the local spot rates, which were
again firmly held at the last level of Rs2,850 per
maund.
Ready off take was light as till late in the
evening about 8,000 bales changed hands, the
following being some of the notably deals: 1,000
bales, Dharki at Rs2,900; 600
bales, Salepat at Rs2,650; 1,000 bales, Khanewal
at Rs3,000; and 1,200 bales, Chingoth at
Rs2,850.ftebr11
The following are Thursday'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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