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Cotton market depicts lacklustre trading
KARACHI, April 27:
Cotton prices remained unchanged at Rs2,850 per
maund (37.324 kg) for base grade 3 on Monday as
spinners and exporters were watching the market
direction after meeting their requirements, a
broker said.
The competition has almost ended as the cotton
season is drawing to a close on April 30.
The spinners had achieved their target by
purchasing 8.512 million bales out of 9.770
million bales, which had reached the market till
April 15, a report issued by the Pakistan Cotton
Ginners’ Association said.
"Only 41 ginning factories in the country were
still operating, including 4 out of 166 factories
in Sindh and 37 out of 634 factories in Punjab," a
market player said.
"Around one million bales had been imported till
February, mostly from the United States, while
other countries included former Soviet Union
republics," he added.
Moreover, despite the spinners meeting their
needs, the actual cotton crop target of 10.1
million bales set by the government seems
difficult to achieve due to differences over the
size of a bale.
The government and the ginners differed on the
weight of a bale as the former had declared 170 kg
as standard weight of a bale while the latter had
reduced the weight to 160 kg, market sources told
The News.
There was no international standard for the weight
of a bale as the US bale weighted 480 lb while
some countries had fixed 220 lb, the sources
added.
By April 15, some 9,770,827 bales of 160 kg had
reached the market, which comes to about 9,196,072
bales when calculated according to the government
weight of 170 kg.
That means the crop target of 10.1 million bales
could not be met as there were only four days
remaining before the close of the season.
On Sunday, 5,600 bales changed hands. Of these,
1,700 bales Rahimyar Khan were sold at Rs2,900
(excluding sales tax), 2,900 and 1,000 bales Moro
at Rs2,690 and Rs2,600 respectively.
On Monday, two lots of 500 bales each Haroonabad
were sold at Rs2,750 and Rs2,700 respectively.
The spot rates for base grade 3 cotton remained
pegged at the previous level of Rs2,850 per maund,
excluding sales tax. This price comes to about
Rs3,327.50 when 15 per cent sales tax and Rs50
up-country charges are included.
The News International, Pakistan |
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Pakissan.com; Advisory Point
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