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Cotton market has a dull session
KARACHI, March 31: The cotton market again
relapsed into inactivity and dullness on Tuesday
as spinners retired to the sidelines after
covering their positions.
Stray business took place on a highly selective
basis. Spinners looked for prime quality lint to
cater for foreign buyers’ requirement for fine
yarn.
Brokers said that since the spinners have a very
comfortable inventory position, they are not
expected to indulge in any heavy buying,
particularly when the world yarn market is still
unsettled. The demand for lint can pick up when
there is a distinct improvement in yarn demand and
price.
However, prime quality lint could be had only at
Rs3,000 per maund. On the other hand, low mic
cotton is available at even Rs2,500. The ginners
were in no hurry to dispose of their stock and
preferred to wait for the final crop report to be
out in the first week of April.
Brokers said that the market may witness sluggish
activity in the coming days as both buyers and
sellers will prefer to bide time until the release
of final crop report.
Meanwhile, the resumption of hedge trading in
cotton is likely to be delayed because of stiff
resistance from the ginners. Spinners, on the
other hand, are anxiously waiting for the start of
hedge trading, as it will lend an element of
stability to cotton prices.
According to brokers, the textile mills have
booked anywhere from 1.2 million to 1.3 million
bales for import since August 2003 from which
nearly 800,000 bales have already arrived here.
Meanwhile, 145,996 bales have been registered for
export out of which 12,112 bales belong to 2002-03
crop and the rest comes from 2003-04 crop.
Actual cotton shipments during the last seven
months ending February 2004 stood at 140,535
bales, the heaviest export having been made during
Oct-Dec, 2004.
Official spot rate remained unchanged at Rs2,950.
Ready business was light, totalling 1,500 bales
out of which 1,000 bales Daharki were sold at
Rs3,000, 200 bales Gotki at Rs3,000 and 200 bales
Chishtian at Rs2,450.
The News International, Pakistan |
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Pakissan.com; Advisory Point
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