|
Main Page
|
 |
|
News Channel |
|
Ready off take remains light on cotton market
KARACHI, April 21: The
cotton market on Tuesday ruled steady but ready
offtake remained light as spinners are extending
guarded support hoping decline in prices. But
lower-than-market arrival figures for the
fortnight ended April 15 , have altogether changed
the future cotton outlook, creating fresh supply
problems for the spinners and mills, dealers said.
"Spinners are judiciously trying to keep prices
within the current level but supply and demand
factors tell a different story," says a leading
broker, adding "they have curtailed their daily
intake, although they still have a long way to go
to see the season through."
Leading among them have opted for inferior
varieties, including low-mic ones for blending
purposes with the polyester yarn to produce blend
cloth for the export markets, he says. Inferior
varieties from the central Sindh cotton belt are
available at around Rs2,500 and Rs2,700 per maund
and bulk of the mill demand is now centred around
them.
Floor brokers said owing to falling unsold stocks
with the ginners, they were not inclined to lower
their asking prices owing to their parity levels.
As a result, ready offtake failed to get normal
average daily turnover.
"The standoff between the ginners and spinners
regarding prices will continue through the season
as both are at a disadvantage," market sources
said, adding "having purchased phutti at higher
rates, the ginners are not inclined to sell at a
loss, while the spinners have to maintain their
export parity level in line with the export
markets."
The ginners also continue to derive support from
the higher New York cotton future prices as the
local selling prices are still attractive for the
spinners as compared to them, they said. New York
cotton futures on Monday finished with modest
gains ranging from 0.22 and 0.35 cents per lb for
both the ruling May and the distant July
settlements at 62.21 and 62.71 cents,
respectively.
Local official spot rates on the other hand were
firmly held at the overnight level in line with
average ready rates. Ready offtake was modest
totalling about 8,000 bales, including some big
deals as under: 3,500 bales, from a central Sindh
ginnery at Rs2,500; 1,100 bales, Haroonabad at
Rs2,650 to Rs2,700; and 400 bales, Muhammadpur
Dewan at Rs2,925.
The following are Tuesday'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 2,825 3,248.75 50 3,298.75
Equivalent
40 kgs 3,028 3,482.20 50 3,532.20 .
The DAWN
|
|
|
|
|
Pakissan.com; Advisory Point
|
|
