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Easy trend continues on cotton market
KARACHI, April 15: Cotton prices on Wednesday shed
another Rs25 as some of the ginners tried to get
out of the market followed by bearish reports from
the world markets but there was no matching buying
by the spinners or mills.
Prices of low-mic lint fell to as low as Rs2,400
and those of fine lots to Rs2,700 but spinners
were not in an obliging mood anticipating further
decline, dealers said. There is panic among the
ginners after the limit-loss in the New York
cotton futures and no one among them could
precisely decide how to react to the changing
world price trends, they said.
"The big question being debated among the leading
ginners who still hold large unsold stock is how
to get out of the market amid falling world
prices", says a leading ginner adding "the price
situation could get out of our hands as spinners
are exploiting the current situation".
But the general consensus among them was that to
watch the world price trend for another week or so
before opting for further action, he said. Both
spinners and mills have further curtailed their
daily offtake in an effort to keep ginners at
their toes all the time until weaker links among
them resort to panic selling.
"The next few sessions could be very crucial for
the ginners", market sources said adding "if the
New York cotton futures do not recovers from the
current seasonal lows, the ginners will remain at
the receiving end despite a pressure on the local
supplies".
"We have purchased lint at an all-time high level
of Rs3,400 per maund at the peak of the season and
now we will like to buy it around Rs2,200 to
remain competitive on the export market", predicts
a spinner.
But some others said nothing could be said about
the future price at this stage at least for the
cotton as it is fraught with high risks as far as
international price situation is concerned.
New York cotton futures on Tuesday suffered fresh
setback of 1.39 and 1.28 cents per lb for both the
ruling May and the distant July settlements at
57.37 and 59.41 cents per lb respectively.
Local official spot rates were also quoted further
lower by Rs25 and dealers predict further fall in
line with the world prices. Ready offtake was
light totalling about 2,000 bales, the following
being some of the notable deals: 600 bales,
Salehpat Rs2,600 and 400 bales, Rohri also at this
rate.
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 2,825 3,248.75 50 3,298.75
Equivalent
40 kgs 3,028 3,482.20 50 3,532.20.
The DAWN
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Pakissan.com; Advisory Point
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