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Cotton market shows steady trend
KARACHI, March 31: The cotton market on Tuesday
showed steady trend and was firmly held at the
previous level despite falling demand, both from
mills and spinners.
Some of the leading spinners were, however, out to
grab the floating stock of fine lots at around
Rs3,000 per maund and leftover stocks with the
ginners of upper Sindh and southern Punjab
remained the centre of activity, brokers said.
The spinners who have made forward sales of higher
counts of cotton yarn to some sophisticated
markets are said to be the main buyers of fine
lots around these levels, they said. However, the
ginners holding unsold stocks are still
entertaining higher price ideas and are selling
them in part and are not inclined to sell them
just in one go.
"New crop from the lower Sindh cotton belt is
still far away and in between could happen
anything depending on the supply and demand
positions," market sources said.
Reports of higher acreage under the new crop by
the growers because of a Rs75 increase in the
procurement price to Rs925 from Rs850 per 40 kg,
have reassured the spinners the next crop could be
in line with their consumption needs if all goes
well till the picking operations resume, they
added.
However, the immediate worry of spinners appears
to be "how to bridge the supply gap" as the
imports are not that cheaper now and the local
crop is too short to meet the entire demand.
New York cotton futures late Monday closing were
quoted higher by 0.65 and 0.54 cents per lb at
65.55 and 67.18 cents per lb, for both the ruling
May and the forward July contracts, respectively,
making imports more expensive.
"The main focus will remain on the local stuff,"
spinners say, adding "but we have to go slow to
contain prices within the current level." Official
spot rates were firmly held at the previous
levels, although stray deals were finalized in
line with the quality premiums.
According to brokers, on an average ready offtake
of 15,000 bales is being transacted daily as the
spinners and the mills are making direct purchases
from the ginners.
Ready offtake was light as till late in the
evening about 5,000 bales changed hands, the
following being some of the notable deals: 1,300
bales, Tharo Shah at Rs2,900; 600 bales,
Shahdadpur at Rs2,750; 1,000 bales, Dharki at
Rs3,000; 200 bales, Gothki also at Rs3,000; and
200 bales, Chistian at Rs2,450.
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 2,950 3,392.50 50 3,442.50
Equivalent
40 kgs 3,162 3,636.30 50 3,686.30.
The DAWN |
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Pakissan.com; Advisory Point
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