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Lower cotton prices fail to
attract buyers
KARACHI- Trading on the cotton
market on Friday was relatively dull as spinners kept to the
sidelines most of time despite the fact that some of the
ginners lowered their asking prices.
But local brokers said stray lots from the southern Punjab
ginneries did change hands, but as the deal were direct
between the ginners and the spinners details are expected to
reach possibly by tomorrow.
After having made active covering purchases during last couple
of sessions spinners appears to have taken a technical
breather to have a look at their inventories before resuming
fresh buying, brokers said.
Ginners are, however, worried over the developing situation
because of larger unsold stock and a big amount to them and
seeking TCP help to bail them out from the impasse of larger
unsold stocks.
Some leading cotton specialists said the future of cotton
appears to be bullish as most of the spinners are receiving
enquiries in larger number for both the export of cotton yarn
and textiles.
"Mill demand for lint is sure to pick up in the coming weeks
as spinners will re-enter the market with big orders by way of
short-covering against their forward sales", they say.
The lean period for the textile sector appears to be ending as
import orders from the European Union and the US are in the
pipeline under the increased quota concessions, they claim.
It was perhaps in this background that spot rates did not show
any change after having fallen by Rs75 during the last couple
of sessions.
New York cotton futures on the other hand ran into
profit-selling and ended lower by 0.77 and 0.78 cents per lb
for both the ruling May and the forward July settlements at
37.37 an 39.10 cents per lb respectively. Meanwhile, private
sector exporters have registered export deals for another
1,661 bales sold to Bangladesh, Indonesia an Thailand, with
the EPB from April 9 to 11.
Ready offtake was light as till late in the evening about
1,500 bales changed hands depending on quality.
The TCP also reported that it has purchased another 900 bales
from ginners at Rs1,855 per maund.
| 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 |
1,700 |
1,955.00 |
50 |
2,005.00 |
|
Equivalent |
| 40 kgs |
1,822 |
2,095.30 |
50 |
2,145.30 |
courtesy Daily Dawn , 13
April, 2002
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Pakissan.com;
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