|
Brisk trading on cotton market
KARACHI, : Active trading was witnessed on the cotton market
on Wednesday as pent-up mill demand briefly caused stir in the
ginning sector but there was no major breakthrough as far as
physical business is concerned.
The buying offers were confined to both the inferior and the
superior types depending on the quality of lint, although a
section of leading spinners was after fine lots around Rs1,650
per maund in a bid to cover their forward positions against
foreign sales of higher counts of cotton yarn, dealers said.
However, as was speculated ginners did not indulge in hasty
selling despite the fact that there was a pressure on their
liquidity positions owing to larger unsold stocks.
Floor brokers said lint prices appear to have stabilized
around the current levels, which apparently suit to spinners
and mills but ginners are claimed to be at the receiving end.
But some others said a considerable decline in phutti prices
at the fag-end of picking operations has allowed the ginners
to balance their unsold positions after having purchased
phutti at much lower levels.
During the mid-season, that between late November and early
December, phutti prices have soared to Rs1,000 per maund,
which have lowered the ginner margins as they were obliged to
make fresh purchases to keep the wheels moving, they added.
Most leading brokers did not foresee any major change in the
market outlook, which is claimed to be in spinner favour. But
spinners are making guarded purchases to keep prices within
the current range to maintain their export parity levels in
order.
Meanwhile, reports originating from the textile sources
indicate that some consignments of import stuff have arrived
but the market did not take a bearish view as there was no
tangible change in the prices.
Some of the spinners have contracted to buy foreign lint at
the time when local prices were much higher than the
prevailing world rates against which shipments have just
started, dealers said.
courtesy Dawn
February 7, 2002
|
Pakissan.com;
|
