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Cotton market rules firm
KARACHI, April 01: Cotton market on Wednesday
stayed firm as ginners were not inclined to lower
their asking prices despite falling mill demand
and the absence of leading spinners.
Stray lots did change hands but there was no
indication of resumption of normal trading as
leading mills and spinners continued to play
hide-and-seek game with the ginners.
After having made large commitments for the
foreign lint, leading textile groups are keeping
off the market in apparent effort to outwit those
ginners who still hold long unsold positions,
brokers said.
But ginners appear to be in no mood as they fully
know the supply and demand position and hope their
holding capacity could well be the ultimate
deciding factor about the future price outlook,
they said.
Moreover, most of them had purchased phutti at
much higher rates amid reports of a short crop and
any lowering of prices from the current average
rate of Rs3,000 for fine lots could well mean huge
losses, they added. Thus the current standoff
leading to a battle of nerves will continue until
the arrival of new crop from the lower Sindh
cotton belt sometime in late July.
Meanwhile, reports coming from the textile sources
indicate that leading among them have already
covered their short positions through import and
are buying the local stuff at will and at their
own price, market sources said.
The latest arrival figures of phutti into the
ginneries for the fortnight ended March 31, due
during the next couple of sessions are expected to
set the future market trend, they said adding
"there appears to be no possibility of further
price hike".
Reports from the New York cotton market were
bearish where prices suffered modest decline on
selling at the inflated levels. Both the ruling
May and the forward July settlements were marked
down by 0.45 and 0.28 cents at 65.10 and 66.90
cents per lb respectively.
But official spot rates did not show any change
and were firmly held at the last levels in the
absence of slow ready business. Ready offtake was
light totalling about 2,000 bales, the following
being some of the notable deals: 400 bales,
Sadiqabad at Rs2,700, low-mic and 800 bales,
Burewala at Rs3,100 per maund without 15 per cent
sales tax.
The following are Wednesday'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 2,950 3,392.50 50 3,442.50
Equivalent
40 kgs 3,162 3,636.30 50 3,686.30.
The DAWN |
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Pakissan.com; Advisory Point
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