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Firm trend on cotton market
KARACHI, April 22:
Cotton market on Wednesday again showed a firm
trend as spinners made fresh selective covering
purchases in an effort not to allow further
increase in prices.
Spinners and mills remained in the market for the
last three sessions but it seems that they have
decided to operate in unison with a sole objective
of "not to allow further increase in prices,"
brokers said. "But to buy at dips and withdraw to
the sidelines if ginners raise their asking
prices," this appears to be a consensus move by
the spinners and mills. "The light ready volume
points to this phenomenon."
Some of the fine lots, which came in for trading
were done between Rs2,800 and Rs3,000 per maund
indicating that ginners are cashing in on the
falling unsold stock of a million bales, dealers
said.
The interesting feature was that some of the mills
were indulging in big-lot business in apparent
effort to grab the floating stock of fine lots at
the prevailing prices, they said.
Some leading brokers fear a standoff in the ready
business as the recent decline in New York cotton
futures may not allow ginners to adjust their
selling prices to international levels.
Indications are that from now onward ginners will
operate keeping in view the supply and demand
factors and may not follow the rise or fall on the
New York Cotton Exchange, market sources said.
"The size of the crop is below the target and
ginners are speculating further increase in local
prices rather than decline," they said.
Meanwhile, reports coming from the major crop
areas indicate that sowing of the new crop is
expected to start by the middle of the next month
and will be completed in a month's time.
New York cotton futures closing on Tuesday failed
to maintain their upward drive and fell by 0.71
and 0.87 cents per lb at 61.50 and 61.84 cents for
both the ruling May and the forward July
settlements respectively.
Local official spot rates on the other hand posted
a fresh rise of Rs25 at Rs2850 per maund in line
with higher prices at which ready business was
done. Ready business was modest amounting to about
5,000 bales as under: 400 bales, Kumb at Rs2,800
and 1,500 bales, Liaquatpur at Rs2,900 and 1,600
bales, Khanpur at Rs3,000.
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 2,850 3,277.50 50 3,327.50
Equivalent
40 kgs 3,054 3,512.10 50 3,562.10.
The DAWN |
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Pakissan.com; Advisory Point
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