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Cotton market resists fall in prices
KARACHI, April 16: Cotton prices on Thursday
resisted fresh decline as ginners stayed on the
sidelines followed by reports of a sharp rebound
staged by the New York cotton futures.
Highly erratic price movements on the world
markets has unsettled the local price line as
ginners could not precisely decided how to react
to swift changes in the foreign markets, dealers
said.
But the grand rebound staged by the New York
cotton futures relieved them the agony of falling
prices at least for the near-term amid hopes
speculative trader may push futures to
pre-reaction levels in the coming sessions.
Both the ruling and forward May and July
settlements on Wednesday finished with limit-gain
of 3 cents per lb followed by strong speculative
support at the lower rates, brokers said. The
former was quoted at 60.37 and the latter at 62.41
cents per lb.
But on the other hand spinners were a bit worried
as the rise above 60 cents per lb will made their
export of textile more expensive limiting imports
of lint to make up the projected local crop
shortfall, they said.
Owing to changing world cotton scene the local
cotton trade may be affected partially as both
ginners and spinners will try to hold on to the
positions, the former anticipating increase in
prices and the latter decline.
"Both will watch the international price trend
during the next couple of sessions before taking
any decision how to operate in a highly volatile
market", sources said.
Meanwhile, spinners will also await the release of
arrival figures of phutti for the fortnight ended
April 15, which will give a fair idea of the final
crop figure. Spinners will have an overview of the
supply and demand figures and their import needs
after the data is released by the Pakistan Cotton
Ginners Association (PCGA).
According to unofficial figures, spinners and
mills have so far imported around 1.2m bales both
at an average rate of 64 cents per lb and below 60
cents level earlier in the season.
Official spot rates were, however, quoted lower by
Rs25 in line with the average prices at which some
business was reported on Wednesday. Ready off take
was light totalling about 6,000 bales as under:
600 bales, Rohri, K-68 at Rs2,600, 400 bales,
Dharki at Rs2,800 and 4,500 bales, MNH-Sawgin,
Haroonabad at Rs2,650 to Rs2,700 per maund without
15 per cent sales tax.
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 2,800 3,220.00 50 3,270.00
Equivalent
40 kgs 3,001 3,451.15 50 3,501.15.
The DAWN |
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Pakissan.com; Advisory Point
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