|
Main Page
|
 |
|
News Channel |
|
Trading fails to pick up on cotton market
KARACHI, April 9: Physical activity on the cotton
market on Thursday failed to pick up as both
spinners and mills were conspicuous by their
absence, eyeing the recent negative developments
on the foreign trading centres.
But despite being at the receiving end in the
absence of strong mill demand, ginners are not
inclined to lower their asking prices on the
perception that they could be chief beneficiary of
a short crop at the fag-end of the season.
However, an unsold of a million bales worth Rs12
billion and higher interest rates on them are
certainly adding to their losses suffered by them
after having purchased phutti at peak levels,
brokers said.
"With private sector exporters remaining on the
sidelines in a highly volatile world market and
falling foreign demand, the spinners and mills are
the sole buyers and they operate according to
their own priorities," says a leading broker.
But some others claim that the spinners and mills
are very much on the market and in most of the
cases are making direct purchases from the ginners
details of which are not immediately communicated
to the Karachi Cotton Exchange.
According to them, on an average a ready business
of about 20,000 bales is being done daily, the
main purchasing centres being upper Sindh and
southern Punjab where bulk of the unsold stocks
are lying in the godowns.
Some of the leading ginners, who are holding on
the bulk of the unsold stock to sell them at the
higher rates are, however, trapped mid-way and may
be some of the prominent losers, they added.
Reports from the New York Cotton Exchange were
positive where the recent downward drift was
halted after the revival speculative trade buying
at the dips. "Whether or not its fallout on the
other world markets will be positive will be seen
during the next couple of sessions," brokers said.
New York cotton futures on Wednesday showed a
fractional fall of 0.4 cent per lb for the May
contract at 61.68, while its forward settlement
was quoted unchanged at 63.76 cents per lb for the
July settlement.
Official spot rates were firmly held at the last
level for the third session in a row in the
absence of price indicators from the ready
section. Ready business was modest totalling 1,400
bales, from a southern Punjab ginnery, Haroonabad,
done at Rs2,700 to Rs3,000 depending on quality of
lint in trade.
The following are Thursday'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
|
|
|
|
|
Pakissan.com; Advisory Point
|
|
