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Prices steady
on cotton market
KARACHI- Amid slow trading raw
cotton prices remained steady in the local market when trading
resumed on Tuesday after a long closure on account of Pakistan
Day and Ashura.
The underlying sentiment remained steady particularly when
mills were still in the forefront of buying indicating that
export trade is gradually picking up, floor brokers said.
The rising trend in yarn and cloth prices in the local market
has worked as an impetus for the brokers as well as mills who
moved into the ring to meet their immediate demand.
A deal of 1,200 bales from upper Sindh (Dore) changed hands at
Rs1,800 which reflects that some improvement is taking place
on export front. Above all the presence of the Trading
Corporation of Pakistan (TCP) as a stabilizer of price is
producing results, because this has checked wide fluctuation
in raw cotton prices ranging from Rs1,200 to Rs1,900 per maund.
Floor brokers anticipate that prices of raw cotton to go
higher in coming days as more mills would move in to replenish
their stocks before the close of current cotton season next
month. However, the post holiday mood restrained business
volume as most of the spinners stayed away and brokers
reckoned that in coming days the market would pick up in term
of volume as well as prices. The official spot rates of
Karachi Cotton Association (KCA) were fixed higher despite the
fact that trading remained restricted.
The cotton output for current season revised downward by the
official cotton assessment committee at 10.4 million bales is
reported to be another factor for rising trend in prices. The
textile industry with an average monthly consumption at 0.8
million bales is expected to consume around 10 million bales
this year.
Transaction on ready board stood at 4,100 bales, they are:
1,200 bales from Dore were done at Rs1,800 and 2,000 bales
from Bagho Bahar were done at Rs1,900.
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The following are Tuesday'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 |
1,775 |
2,041.25 |
50 |
2,091.25 |
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Equivalent |
|
40 kgs |
1,902 |
2,187.30 |
50 |
2,237.30 |
Courtesy Dawn March
27, 2002 |
Pakissan.com;
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