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Brisk trading
on cotton market
KARACHI- Firm trend was witnessed on the cotton market on
Tuesday as spinners made an extensive covering purchases amid
a briskly traded session. About 12,000 bales including some
big lots changed hands.
Market sources failed to give any specific reason behind the
spinners's sudden thrust but some said denial of reports by
the TCP saying that it has stopped buying operations and is
very much in the arena seem to have lure them back as a first
buyer.
Some of the deals were done as higher as Rs1,900, sending
signals that prices could rise further at least for quality
stuff, they added.
Bulk of the business was, therefore, confined to fine quality
lots as spinners too were out to chase prices higher in line
with their export parity levels, dealers said.
After having imported about 0.770 million bales of lint from
various sources since Sept 1, 2001 to the second week of March
2002, dealers were surprised over the panic with which
spinners and mills made covering purchases at the rising
prices, they said.
Together with local buying of about 8.8 million bales, most of
the leading spinners are said to be close to their annual
consumption targets and that is why they have curtailed their
daily purchases to keep ginners under pressure. But on the
other hand the recent increase in New York cotton prices
appears to have encouraged ginners to hold to their unsold
stocks amid hopes that the market conditions may improve
further thanks to the strong presence of the TCP.
"The TCP has still to go a long way to achieve the officially
stipulated procurement target of a million bales as it has so
far purchased about 0.400 million bales of fine types of lint
both from the upper Sindh and southern Punjab cotton belt",
brokers said.
It was perhaps in this background that the ginners are firmly
holding to their long oversold positions above a million
bales.
Market sources said the current standoff has been broken as
both the ginners and the spinners are not inclined to take a
technical breather.
Exporters also seem to be active on the market devoid of
showing signs of revival of normal trading as they have
already hit the prestigious export sales figure of 0.100
million bales despite their late entry into the arena because
of Sept 11 fallout.
Official spot rates were again held unchanged as there was no
change in the quality premiums of the lint in trade, according
to official sources.
New York cotton futures on the other hand showed a modest rise
of 25 and 31 cents per lb at 38.41 and 39.95 cents per lb
respectively.
Ready offtake was large owing to strong mill demand totalling
about 12,000 bales as under:
SINDH TYPE: 1,200 bales, Khipro at Rs1,700, 1,000 bales,
Sanghar at Rs1,550 on credit, 400 bales, Khairpur Mirs at
Rs1,825, 200 bales, and Gothki at Rs1,825.
PUNJAB VARIETY: 2,000 bales, Bahawalpur at Rs1,800, 1,000
bales, Ahmedpur East at Rs1,800, 230 bales, Sadiqaad at
Rs1,900, 1,400 bales, Rahimyar Khan at Rs1,800, 1,000 bales,
at Rs1,775, 200 bales, Muridwala at Rs1,700 and 1,000 bales,
Bagho Bahar at Rs1,900.
| 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 |
1,775 |
2,041.25 |
50 |
2,091.25 |
|
Equivalent |
| 40 kgs |
1,902 |
2,187.30 |
50 |
2,237.30 |
courtesy Daily Dawn, 3
April, 2002
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Pakissan.com;
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