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Cotton prices firm as demand picks up
KARACHI, April 17:
Cotton prices on Friday rose from the current
lower levels as spinners and mills resumed their
covering operations amid fears that ginners may
held on to their positions in line with the
recovery staged by the New York cotton futures.
New York cotton futures, which have fallen below
the 60 cents per lb mark earlier this week,
sending optimistic signals among the spinners
again rose to pre-reaction levels on strong
speculative support at the lower levels during the
last two sessions.
The increase in world prices above the 60 cent
benchmark has altogether changed the markets
elsewhere, but its fallout on the local market was
more than bullish, dealers said.
"Ginners, notably who still hold long unsold
positions were worried over the falling world
prices and were on the lookout for some supporting
factors", they said "the rebound in New York
futures reassured them that prices may not fall
from the current levels". But there is loud
whispering among the leading ginners to get out of
the market as early week's sale could repeat
itself any time, market sources said.
"Ginners are seized with the problem of selling
their stocks at a competitive price in an
uncertain world market, which has direct negative
bearing on the local prices", they said adding "on
the one hand they have to maintain the current
prices level and sell them at their asking price
on the other".
Spinners also followed the world market trend and
resumed their covering operations as ginners did
not lower their prices below their parity levels.
Instances of stray panic selling were, however,
not lacking as some of the ginners holding odd
lots of low-mic lint sold them at as a low price
as Rs1,925 and an exporter purchased them readily
and sold to a spinner on profit.
New York cotton futures on Thursday posted fresh
rise of 1.03 cents per lb for the ruling May
contract at 61.40 cents per lb, while the forward
July was quoted higher by 0.22 cents at 62.63 amid
active trading. Local official spot rates on the
other hand did show any change and were held at
the overnight level.
Ready offtake was active as till late in the
evening about 10,000 bales changed hands, the
following being some of the notable deals:
SINDH TYPE: 2,600 bales, Mandodaro at Rs2,725, 400
bales, Bucheri at Rs2,900, 400 bales, Kot Laloo at
Rs2,865, 200 bales, Kot Deji at Rs2,800, and 400
bales, Hyderabad at Rs2,800.
PUNJAB VARIETY: 400 bales, Haroonabad at Rs2,825,
400 bales, Liaquatpur at Rs2,900, 800 bales,
Rajanpur at Rs2,865, 600 bales, Samundari at
Rs2,900 and 1,000 bales, from various stations of
Punjab at Rs1,925.
The following are Friday'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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