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Prices ease on
higher Phutti arrivals
KARACHI-Cotton prices on Thursday
eased slightly from the previous levels amid fears that higher
arrivals of phutti into the ginneries could work against the
underlying sentiment in the coming sessions.
What seems to have sent a wave of pessimism among the ginners
was above market expectations arrivals of phutti for the
fortnight ended March 31, floor brokers said.
The market's general perception about the crop estimate was
between 9.8 million and 10 million bales, but the figure has,
according to latest report, crossed the benchmark by a fair
margin and could touch the high mark of 10.5 million bales as
forecast by the crop assessment committee in its latest
meeting.
The Pakistan Cotton Ginners Association (PCGA) is expected to
come out with the final crop figure possibly by May 15, after
all the ginneries will shut down their business for the
current season ending on Aug 31.
"After successive fall in arrivals since the beginning of the
season owing partly to late sowing because of irrigation water
shortage, the maiden increase though is modest has sent a wave
of optimism among the spinners", claims a leading broker. But
on the other leading ginners who still hold long unsold
positions are a bit worried amid predictions that prices could
fall from the current level if the TCP did not intervene, he
added.
According to official figures of 10.116 million bales,
spinners have purchased about 8.5 million bales, leaving an
unsold stock of 1.396 million bales with the ginners, which
said to be on the higher side as compared to the last
season's.
Cotton analysts said higher crop figures are always welcome as
they ensure comfortable supply to the textile sector at
competitive rates and add to forex earnings and no body should
be alarmed.
"Market forces will finally play a decisive role in
determining the future price outlook, although the initial
reaction of the weaker links among the ginners may be
bearish", they added. However, there was no change in the
official spot rates, although some of the deals in the ready
section struck below the previous levels.
After having risen during the last couple of sessions, New
York cotton futures fell by 0.43 and 0.44 cents per lb at
38.20 and 39.82 cents per lb for both the ruling May and the
distant July settlements respectively.
Ready offtake was light as till late in the evening about
7,000 bales changed hands as under:
SINDH VARIETY: 400 bales, Bandhi at Rs1,675 and 2,000 bales,
Khipro at Rs1,700 on credit.
PUNJAB TYPE: 400 bales, Burewala at Rs1,600, 2,000 bales,
Bahawalpur at Rs1,800 and 1,500 bales, Ahmedpur East also at
the same rate.
| 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 |
1,800 |
2,070.00 |
50 |
2,120.00 |
|
Equivalent |
| 40 kgs |
1,929 |
2,218.35 |
50 |
2,268.35 |
courtesy Daily The News, 5
April, 2002
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Pakissan.com;
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