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Prices ease on cotton market
KARACHI, April 8: Cotton prices on Wednesday
modestly eased from the previous levels as some of
the ginners tried to unload their positions at the
current levels amid predictions of further decline
in prices.
Governor State Bank Dr Ishrat Husain who visited
the Karachi Cotton Association (KCA) on Wednesday
to have an overview of the current cotton
situation and the allied problems being faced by
the cotton trade has a detailed discussions with
the high-ups including hedge trading.
But showed his inability when requested to
persuade spinners and mills to bail the ginners
out from the larger unsold stock of 1.2m bales
lying with them. He said ginners should have sold
their stocks after prices had hit the all-time
high mark of Rs3,600 per maund.
Most of the deals were finalized in line with the
quality premiums but ginners failed to maintain
their previous price level of Rs3,000 per maund
and lowered their asking prices for the stuff to
Rs2,900.
Some of the deals both in upper Sindh and southern
Punjab lint were done at Rs2,900 as ginners have
been outwitted by the spinners after having
significantly curtailed their daily intake,
dealers said.
The other destabilizing factor was falling world
prices and fears among the local ginners of an
identical decline in prevailing prices and weaker
among them hastened to get out of the market.
New York cotton futures fell further on Tuesday on
renewed selling and were quoted lower by 0.46 and
0.35 cents per lb at 61.72 and 63.76 cents per lb
for both the ruling May and the forward July
contracts respectively.
Meanwhile, despite being in short supply spinners
and mills are making cautious buying apparently in
an effort to keep prices within the current
levels, brokers said.
Moreover, hopes of further decline in world
prices, which could make import more competitive
also hindering larger buying by the mills, they
said. Official spot rates were, however, did not
show any change despite fall in the ready prices
and were firmly held at the previous levels.
Ready business was modest totalling about 10,000
bales as under:
SINDH TYPE: 1,000 bales, Nawabshah at Rs2,700,
1,100 bales, Upper Sindh fine quality at Rs2,900.
PUNJAB VARIETY: 500 bales, Burewala at Rs2,900,
1,400 bales, Rahimyar Khan at Rs2,900, 200 bales
at Rs2,800 and 1,300 bales, Sadiqabad at Rs2,400.
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 2,900 3,335.00 50 3,385.00
Equivalent
40 kgs 3,108 3,574.20 50 3,624.20.
The DAWN |
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Pakissan.com; Advisory Point
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