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Prices move up on cotton market
KARACHI, April 24:
Cotton market on Friday showed firm trend as
ginners further raised their asking prices in line
with the international prices but spinners were
not inclined to bid above Rs2,900 per maund.
Floor brokers said ginners are now a bit
optimistic about the future price trend on the
perception that spinners would prefer to buy from
the local market rather than opting for expensive
foreign lint.
The other contributory bullish factor is pressure
on ready supplies as crop figure may not touch the
target of 10m bales as the latest arrival figures
indicate, showing a gap of 0.2m bales around
9.771m bales, they said.
But what seems to have gone against the spinners
is the snap recovery staged by the New York cotton
futures and its positive impact on the other
markets including local ones.
"Some two weeks earlier spinners have a full
control on the local prices as they enter and
leave the market at their will being the sole
buyers", market sources said adding "the entry of
exporters in the market and rebound in world
prices took the initiative from them and ginners
assumed the role of price trend setters".
Although some of the private sector exporters were
buyers of low-mic lint and in no way offered
competition to the spinners, their presence on the
market went in favour of the ginners.
Some of the private sector exporters purchased 600
bales of low-mic lint from a Sanghar ginner at
Rs600, indicating that foreign buyers are opting
for the local lint in the backdrop of bull-run on
the New York Cotton Exchange, dealers said.
New York cotton futures on Thursday ended with
fresh gains ranging from 0.65 and 1.03 cents per
lb for both the forward July and the ruling May
contracts at 63.28 and 64.48 cents per lb
respectively.
Local official spot rates were also upped by Rs25
at Rs2,875 per maund without 15 per cent sales
tax. Ready business was active totalling about
10,000 bales, the following being some of the
notable deals:
SINDH TYPE: 600 bales, Sanghar at Rs2,500,
purchased by exporters, 1,000 bales, Kumb at
Rs2,850, 400 bales, Bhiria Road at Rs2,775, 800
bales, Mehrabpur at Rs2,600, 600 bales, Salehpat
at Rs2,650, 200 bales and Nawabshah at Rs2,700.
PUNJAB VARIETY: 200 bales, Muridwala at Rs2,750.
The following are Friday'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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