| Market
Watch
Active buying
on cotton market
KARACHI, Jan 10: Cotton market on Thursday showed an improved
trend as spinners remained active buyers of quality lots
offered by ginners below Rs1,800 per maund.
As a result, for the third session in a row big-lot business
was reported as leading spinner groups resumed their covering
operations after the entry of exporters into the market.
Although the rates, between Rs1,675 and Rs1,775, at which
business is currently being transacted are claimed by ginners
below their parity levels, they are obliged to liquidate long
positions for financial reasons.
"Ginners seem to have lost all hopes of a possible pick up in
rates despite the fact that the mid-season slump may not be a
correct assumption about the future market outlook", says a
floor broker.
He says the last three to four months before the new crop
arrives on the market in early August in lower Sindh could be
very crucial for the cotton economy as well as the price
trends. But a big unsold stock of over 2 million bales worries
giners amid fears that prices could fall further if mills did
not resume their normal buying during the next couple of
weeks.
Market sources claim spinners are also weighed down by the
falling demand for the cotton yarn and they too are the victim
of large unsold inventories, which in turn has curtailed their
normal market operations.
The future mill buying will largely be guided by the
proceedings on the export front and the improvement in prices
of end products including cotton yarn, they say. Meanwhile,
reports coming from the southern Punjab ginneries say ginners
have resumed buying leftover stocks of phutti held up owing to
moisture caused by heavy fog during the last about two weeks.
Official spot rates remained did not show any change and
remained pegged at the last levels, although most of the deals
in the ready section were done at the higher rates.
Ready business was active as till late in the evening about
10,000 bales changed hands as under:
SINDH TYPE: 1,000 bales, Bandhi at Rs1,675, 2,000 bales, and
Sakrand at Rs1,700.
PUNJAB VARIETY: 2,000 bales, Sadiqabad at Rs1,725 to
Rs1,775.00, 2,000 bales, Rahimyar Khan at Rs1,750 to Rs1,775,
1,000 bales, Bahawalpur at Rs1,700 to Rs1,750, 700 bales,
Khanpur at Rs1,775 and 200 bales, Bagho Bahar.
|
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 |
1,725 |
1,983.75 |
50 |
2,033.75 |
|
Equivalent |
|
40 kgs |
1,849 |
2,126.35 |
50 |
2,176.35 |
Courtesy Dawn January 11, 2002
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