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Momentum picks up on cotton market
KARACHI, April 27:
Trading on the cotton market on Monday resumed on
a higher note as spinners and mills made fresh
covering purchases against their forward sales of
cotton yarn and cloth.
Although physical business was well below the
daily average figure at this time of the season,
leading spinners continued to indulge in big-lot
business, bulk of which confined to fine lots,
brokers said.
Contamination-free lots from the southern Punjab
cotton belt remained the centre of activity as
most of the spinners purchased it for higher
counts of cotton yarn around an average rate of
Rs2,900 per maund, they said.
Fearing pressure on local supplies and consequent
increase in prices, spinners are out to grab the
floating stock below Rs3,000 per maund after
leading ginners have slashed their asking prices.
The current highly volatile price movements on the
world markets also worried spinners as it was
pretty difficult to make long-term planning in
fluctuating market.
But much will depend on the final crop figures
expected to be released by the Pakistan Cotton
Ginners Association (PCGA) by the first week of
the next month as total supplies in the shape of
unsold stocks with the ginners are expected to
influence prices possibly on the higher side,
market sources said.
The local cotton situation as far as supplies are
concerned is unclear and spinners and mills are
worried over the rising world prices and the
pressure on local supplies, they said.
Despite having already imported a million bales
from various sources mills may still need further
imports before the new crop from the lower Sindh
cotton belt arrives sometime late July.
Meanwhile, reports coming from the major crop
areas including upper Sindh and the southern
Punjab cotton belt show that new crop sowing is
expected to resume from May 15, and will be
completed by the end of June, considered ideal
time for a good and free from pest attack, ginners
said.
Official spot rates were, therefore, firmly held
at the last levels, although some of the deals
were done well above them. Ready offtake was
active as till late in the evening about 8,000
bales changed hands, the following being some of
the notable deals: 200 bales, Nawabshah at
Rs2,690, 2,000 bales, Haroonabad at Rs2,750, 800
bales, Liaquatpur at Rs2,900, 1,400 bales,
Setharja at Rs2,950 and 1,700 bales, Rahimyar Khan
at Rs2,900.
The following are Monday'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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