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Dull trading
on cotton market
KARACHI- Quieter conditions
prevailed on cotton market on Friday as spinners kept to
sidelines most of the session and did not make fresh
commitments.
"The latest arrival figures have allayed the fears of a
possible pressure on nearby supplies and spinners took a
breather to have an overview of the objective cotton
situation," floor brokers said.
Some leading spinners were also of the view that prices could
fall from the prevailing levels as mill buying will remain
relatively slow during the next couple of weeks.
Although spinners still need another 1.5m bales to meet their
annual demand, they are in no hurry as the supply position is
expected to remain fairly comfortable thanks to above market
production estimates.
Ginners are, however, not worried over the temporary pause and
hope spinners have to be back as they still have to go a long
way to cover their annual needs.
Floor brokers said the TCP was very much in the market and
buying fine lots in export packing conforming to their quality
standard, but its daily offtake is too small to influence the
prices.
The private sector exporters are, however, now active and are
covering their forward positions to meet their physical
shipment deadlines. Their presence in the market is keeping
ginners in a positive mood.
"After having crossed the export sales figure of 0.1m bales,
the private sector exporters seem to be making all out efforts
to secure more shipment orders from the Far Eastern buyers,"
market sources said, adding "their total tally may match the
previous figure, they are certainly eying half a million
figure."
Physical shipments are also being made according to deadlines
as was reflected by a figure of 82,304 bales against total
sales of 0.106m bales, they added.
Meanwhile, the private sector exporters have registered
foreign sales contracts for another 3,672 bales sold to
Bangladesh, Taiwan and Thailand with the Export Promotion
Bureau on April 3 and 4, indicating the pace of foreign sales.
There was no change in the official spot rates, but New York
cotton futures fell further modestly at 37.72 and 39.29 cents
per lb for both the ruling May and the distant July
settlements, respectively.
Ready offtake was light, totalling about 2,000 bales, the
following being the notable deals: 600 bales of Moro at
Rs1,650 and 400 bales of Punjmoro also at the same rate.
| The
following are Friday'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 |
1,800 |
2,070.00 |
50 |
2,120.00 |
|
Equivalent |
| 40 kgs |
1,929 |
2,218.35 |
50 |
2,268.35 |
courtesy Daily Dawn , 6
April, 2002
|
Pakissan.com;
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