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Prices rise
on cotton market
KARACHI- Cotton prices on Wednesday rose modestly in sympathy
with international markets amid fresh buying offers from the
spinners and the mills followed by report of pressure on the
supply of quality lots.
At the fag-end of the season, all the participants in the
cotton trade, including spinners, exporters and the TCP are
said to be now more than active in a bid to covering their
forward commitments.
"Fears of short supply are not there as ginners still hold an
unsold stock of over a million bales," one broker says, adding
"what worries them is the availability of fine lots after some
weeks."
Most floor brokers believe prices are heading to match those
of the TCP, at which it is purchasing lint in export packing
and according to its quality standards as there could be an
imbalance in supplies and demand during the next couple of
weeks.
The TCP is buying contamination-free lint cotton in export
packing at Rs1,855 per maund but spinners now have raised
their bids to Rs1,900 per maund, excluding 15 per cent sales
tax.
Another contributory positive factor is said to be delayed
sowing of cotton in the lower Sindh cotton belt because of
shortage of water. The cotton in this part of Sindh is sown in
February and it arrives on the market in late July or early
August.
Having an overview of the developing situation on the cotton
front, spinners have resumed their covering operations amid
fears that prices may rise from the current levels rather than
falling, floor brokers said. Meanwhile, private sector
exporters during the last two days registered export sales of
another 3,498 bales with the Export Promotion Bureau, out of
which 2,700 bales were sold to Thailand and the balance to
Bangladesh.
The total exports sales from September 1, 2001 to April 2,
2002 amounted to 0.103 million bales, including 7,685 bales of
the old crop, out of which 82,304 bales have already been
physically shipped to various destinations.
Official spot rates for the grade-111 lint were revised upward
by Rs25 per maund in line with the prevailing ready prices.
Ready offtake was relatively slow as spinners took a breather
after having made larger buying a day earlier. As a result,
only 2,000 bales changed hands both from Sindh and Punjab
centres.
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The following are Wednesday'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. |
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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 |
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Equivalent |
|
40 kgs |
1,929 |
2,218.35 |
50 |
2,268.35 |
courtesy Daily Dawn, 4
April, 2002
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Pakissan.com;
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