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Trading
improves on cotton market
KARACHI, March 19: Physical activity on the cotton market on
Tuesday maintained on the higher side as spinners were not
inclined to have a look at their inventories in the backdrop
of some positive developments on the export front.
Physical shipment of textiles to foreign destinations are
still far behind the initial targets but a good beginning has
been made followed by increase in quota by the European Union
and the US, although it will take quite some time to attain
normalcy.
This fact was fully demonstrated by some leading textile
groups who further raised their bid prices for the fine lint,
of course, after having made sales at the much higher rates,
says a ginner. The deal in question is from the southern
Punjab ginnery, which fetched the mid-season's highest price
of Rs1,890 per maund without 15 per cent sales tax.
"This rate is claimed to be slightly above the ruling world
prices and may have a lot of logic behind it," says a leading
broker, adding "it has generated a lot of optimism among the
ginners, notably those who had purchased phutti at much higher
rates earlier in the season and were at a loss."
The chang in spinner mood is reflective of the fact that
normalcy is returning to the export business and there is no
reason to fear that the current textile year could end on an
optimistic note after clearing the early mess by the TCP.
Although the private sector exporters now have become active,
but their role as a third force was well below their normal
activity. Last season their total tally by March was about
half a million bales as compared to modest purchases of about
75,000 bales.
With the strong presence of the TCP in the market ginners
still holding fine lots in standard export and commercial
packing could be chief beneficiary if they did not waver
during the next three months, market sources said.
The future cotton outlook appears firm despite the fact that
spinners and mills have nothing to worry about the supply
position as higher unsold stock of 1.5 million bales and
higher crop estimate of 10.6 million bales means a large
exportable surplus, ginners said.
There was no change in the official spot rates as overnight
gain was fully consolidated thanks to the presence of mill
demand. Ready business was moderately active as till late in
the evening about 6,000 bales changed hands, the following
being some of the notable deals:
SINDH VARIETY: 500 bales of Sanghar at Rs1,500, 600 bales at
Rs1,535, 500 bales, Rasoolabad at Rs1,725, 600 bales, Rohri at
Rs1,800, 600 bales, Dharki at Rs1,800 and 400 bales of Gothki
at Rs1,800.
PUNJAB TYPE: 200 bales of Sadiqabad at Rs1,675, 200 bales, at
Rs1,725 and 400 bales of Bagho Bahar at Rs1,890.
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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 |
1,725 |
1,983.75 |
50 |
2,033.75 |
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Equivalent |
|
40 kgs |
1,849 |
2,126.35 |
50 |
2,176.35 |
Courtesy Dawn March
22, 2002
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Pakissan.com;
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