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Cotton market lacks normal trading
KARACHI, April 7: The cotton market on Tuesday
lacked normal trading interest as spinners and
mills kept to the sidelines, awaiting fresh
developments on the world cotton market after
reports of further fall in New York cotton
futures.
There were no signs of revival of physical
activity as witnessed a day earlier after spinners
lifted about 15,000 bales as both the spinners and
mills again withdrew to the sidelines,
anticipating sympathetic decline in line with the
world prices, dealers said.
"Spinners are playing a hide-and-seek game with
the ginners for the last couple of sessions," they
said. "They promptly withdraw to the sidelines
after indulging in hectic buying a day earlier
apparently in a bid to keep the ginners at their
toes all the time."
But the ginners appear to be in no mood to lower
their asking prices, notably for the fine and
contamination-free lots, which they are selling at
around Rs3,000 per maund.
However, those ginners who are holding stray lots
of low-mic lint are not to inclined to hold them
further and are selling them mostly at the
spinners offered prices.
The unsold stocks of 1.2m bales lying with some
leading ginners are no problems with them as their
holding capacity is strong and they could hold
them until the new crop arrives on the market,
market sources said, adding "the further decline
in fine lots appears to be now a remote
possibility."
The future price outlook is expected to be guided
by the local supply and demand factors and any
further fall in New York cotton futures may not
have any relevance to it, they added.
That is perhaps why there was no change in the
official spot rates, which were firmly held
unchanged at the last levels, while in the ready
section some fine lots were sold at Rs3,000 per
maund.
New York cotton futures on the other hand fell
further on speculative trade selling, off 0.44 and
0.52 cents per lb for both the ruling May and the
forward July settlements at 62.18 and 64.11 cents,
respectively.
Ready offtake was light as till late in the
evening 3,000 bales changed hands, the following
being some of the notable deals: 1,000 bales,
Alipur at Rs3,000; and 400 bales, Sadiqabad at
Rs2,725, while no business was reported in Sindh
varieties for the third session.
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 2,900 3,335.00 50 3,385.00
Equivalent
40 kgs 3,108 3,574.20 50 3,624.20.
The DAWN |
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Pakissan.com; Advisory Point
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