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Cotton market breaks ice after spot rates cut
KARACHI: Cotton market saw some trading activity
on Monday, breaking the ice after a prolonged
bearish trend thanks to Karachi Cotton
Association, which cut its spot rates by Rs25 a
maund, dealers said.
The KCA, the domestic market cotton trade
supervisory body, slashed ex-gin price by Rs25 to
Rs2,850 per maund from Rs2,875.
"The KCA move emboldened some spinners to lay
hands on some high quality available lots," one
broker said.
On the ready board, some 1,500 bales changed hands
at prices slightly above than the KCA spot rates.
The trade included 300 bales from Vehari at
Rs2,876 per maund; 1,000 from Duniyapur at
Rs2,865; and an exporter lifted some 200 from
Haroonabad at Rs2,800 per maund - all deals were
made exclusive of sales tax.
Textile mills and spinners, already enjoying
adequate quantity of imported lint cotton, did not
felt very much tempted to move into market. The
continued to signal ‘wait and see’ trading stance.
Whereas; commercial exporters distanced themselves
of the business. They detached from the market and
almost vanished from scene in the wake of
depressed cotton market situation world over.
The Federal Committee on Agriculture, headed by
Federal Minister for Food, Agriculture and
Livestock (MINFAL), has recently fixed cotton
cultivation target at 3.14 million hectares but it
did not give any province-wise breakdown.
The production target is fixed at 10.72 million
bales equivalent lint with average per bale
weightage at 170-kilogramme each. The captains of
agriculture sector anticipated a yield of
581-kilogramme of seed cotton per hectare during
the season 2004-05.
According to official figures availbe with customs
department, commercial exporters have shipped some
140,535 bales of 170kg each during the first seven
months of market year 2003-04.
On the contrary, the Export Promotion Bureau (EPB)
has registered a total of 177,711 bales from
August 01, 2003 to April 5, 2004, including
166,599 bales from crop 2003-04 and some 12,112
bales from last year crop.
Whereas commercial importers brought in a total
693,619 bales during August, 2003 to January,
2004.
The News
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Pakissan.com; Advisory Point
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