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Cotton market remains steady
KARACHI- Steadier conditions prevailed on the cotton market on
Friday as ginners were not inclined to lower their asking
prices amid predictions of revival of foreign demand.
Spinners, too, appear to be in no haste as higher crop
estimate has reassured them that there could be no pressure on
ready supplies and prices may remain competitive till the
fag-end of the year.
Although ginners still hold an unsold stock of about 1.3m
bales worth Rs15bn the lean period for most of them has passed
after the adjustment of bank overdraft limits. "The deadline
of June 30 is still far away and anything could happen in
between," says a leading ginner, adding "the satisfying
feature is that timely entry of the TCP to support the market
has altogether changed the future market outlook."
The falling purchases by the spinners, therefore, have a
little negative impact as leading ginners who still hold long
unsold positions knew that spinners have to be back in the
market and cover their forward positions.
"No one among us is dumping lint to any buyer," claims a
leading ginner, adding "if one has to sell he has the
alternate channels, including the TCP and the private sector
exporters in the absence of spinners." It was perhaps in this
background prices are rising despite a considerable decline in
ready mill offtake for the last couple of weeks.
The market sentiment in part was also influenced positively by
reports of higher world rates followed by revival of demand
from the users, who do not produce cotton and short crop ideas
in some major producers.
Meanwhile, reports reaching here from the southern Punjab
cotton belt indicate that some of the leading spinners are
seeking more supplies of fine type of lint, but as the price
ideas of buyers and sellers are poles apart physical business
remained at a low ebb. However, unconfirmed reports claim
forward deals are being transacted at much higher rates,
touching the high mark of Rs1,900 and on two-month credit are
fetching slightly better price.
Ready business was modest as till late in the evening about
2,000 bales, both from the upper Sindh and southern Punjab
ginneries changed hands between Rs1,650 to Rs1,775 per maund.
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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. |
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Rate for |
Exgin price |
Ex-gin price
including Sales Tax |
Upcountry Expenses |
Spot rate ex-Karachi
including Sales Tax @ 15% |
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37.32 kgs |
1,775 |
2,041.25 |
50 |
2,091.25 |
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Equivalent |
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40 kgs |
1,902 |
2,187.30 |
50 |
2,237.30 |
Courtesy Dawn March
30, 2002
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Pakissan.com;
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