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Ginners raise prices on cotton market
KARACHI, April 29:
Physical activity on the cotton market on
Wednesday shrank as ginners further raised their
asking prices taking a bullish cue from the New
York cotton futures.
Official rate committee, therefore, revised upward
spot rates by Rs25 per muand at Rs2,875 as some of
the fine lots on Tuesday were traded as higher as
Rs3,025. "The snap rebound in lint prices worried
spinners and mills as most of them were rendered
uncompetitive on the world markets just in one
go," says a spinner.
"We have to work in line with the export parity
levels of our immediate competitors on the textile
markets and any blinking could undo the entire
fabric." Unlike the previous couple of sessions,
spinners and mills, therefore, did not resume
their covering operations at the higher asking
prices and most of the time stayed on the
sidelines.
There were fears among the spinners that some of
the ginners still holding long and large unsold
stocks of lint may hold them for another couple of
weeks to push prices further higher.
"There is a loud whispering in the market that
ginners are again eyeing the pre-reaction level of
well over Rs3,000 per maund before the arrival of
new crop and fresh imports," says a leading broker
commenting on the price flare-up during the last
couple of sessions.
Higher New York cotton futures and a short crop of
possibly below 10m bales will continue to haunt
spinners and mills and in the process, weaker
among them could opt for panic buying and the
consequent fresh increase in prices, he says.
But some others say the final crop figures are due
next week and that will give a fair idea of supply
and its likely impact on the prices in the coming
weeks. New York cotton futures on Tuesday finished
with a fresh rise of 0.67 and 0.46 cents per lb at
64.85 and 62.63 cents per lb for both the ruling
May and the distant July settlements respectively.
Meanwhile, there was a relative quiet on the
export and import front as there was no change in
the previous figures, which stood at 0.178m bales
and 0.970m bales respectively.
Ready business was light as till late in the
evening about 5,000 bales changed hands, the
following being some of the deals: 2,000 bales,
Burewala Rs3,000 to Rs3,025, 200 bales, Kabirwala
at Rs3,025, 240 bales, inferior type, Sadiqabad at
Rs2,400 and 400 bales, Dharki at Rs2,375.
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 2,875 3,306.25 50 3,356.25
Equivalent
40 kgs 3,081 3,543.15 50 3,593.15.
The DAWN
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Pakissan.com; Advisory Point
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