|
Main Page
|
 |
|
News Channel |
|
Dullness prevails on cotton market
KARACHI, April 3: The cotton market on Friday
passed through another dull trading session as
buyers and sellers kept to the sidelines, watching
developments on the world cotton front.
While spinners' absence from the market is
attributed to violent bearish price movements on
the New York futures market and hopes of an
identical fall in local rates, ginners were
worried over the sudden change in the world price
outlook, dealers said.
But the ginners are in no mood to get panicky and
are holding on to their positions and may not
lower their asking prices for the fine lots owing
to parity levels in relation to phutti.
Some of them are holding stray lots of low-mic
lint while others are getting out of their unsold
positions after selling at a bit lower rates,
dealers said.
For the second session in a row, New York cotton
futures suffered fresh pruning of 57 cents per lb
for the ruling May settlement amid predictions of
further decline as speculative selling could
further intensify in the sessions to come followed
by higher crop projections, both in the US and
China, they said.
Local spinners are watching the changing world
cotton scenario with interest as the price
movements are progressively tilting in their
favour, says a leading broker, adding "but whether
or not they remain competitive on the world yarn
market amid falling lint prices is yet to be
ascertained."
However, leading spinners think any further
decline in New York cotton futures could benefit
them. "The fall of the May settlement below the 60
cent per lb mark could enable us to balance our
inventories purchased on an average rate of 64
cents per lb during the last couple of months."
The spinners have so far imported about 0.7m bales
of lint from various foreign sources to make up an
expected local crop shortage and may need some
more supplies to see the current season through,
brokers said.
Official spot rates were firmly held at the last
levels in the absence of falling ready business,
but dealers said they fell after normal trading
resumes.
Ready offtake was light and confined to low-mic
lots, totalling about 2,000 bales as under: 400
bales, Sadiqabad at Rs2,550 and 1,400 bales at
Rs2,400 per maund without 15 per cent sales tax.
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 2,925 3,363.75 50 3,413.75
Equivalent
40 kgs 3,135 3,605.25 50 3,655.25.
THE DAWN |
|
|
|
|
Pakissan.com; Advisory Point
|
|
