March, 23 2005	Wednesday	12 Safar 1426

KARACHI, March 22: Cotton prices on Tuesday remained stable around the previous levels as spinners and mills indulged in mop up operations amid reports of falling unsold stocks lying with the ginners. An idea of grabbing of floating stock by leading textile groups below Rs2,400 may well be had from the fact that a big lot of 8,000 bales of fine lint changed hands as some of the ginners agreed to make the deal.

However, it was not clear whether or not it went to the credit of a single buyer or a group of spinners and mills. The lot is said to be of better quality, which spinners and mills need badly as the earlier crop projections fell short of the target, dealers said. Market sources said spinners fear that prices could rise from the current levels during the next couple of weeks as reports of falling unsold stocks with the ginners could well prove a bullish factor.

“Both spinners and mills are said to be fully booked with export orders and they could resort to panic buying to cover their forward positions against foreign sales, which in turn could heat up the market”, they said. Leading among them were out to grab floating stock of lint but ginners were reluctant to oblige them and selling in part their holding hoping an increase in prices during the next couple of weeks.

According to them unsold stocks of lint with the ginners now were not more than half million bales including inferior stuff and that is said to insufficient to cover their forward sales of cotton yarn and cloth. As the arrivals of phutti into the ginneries have dried up and most of the ginners have closed down their ginning operations there is no possibility of any fresh significant addition in the total crop figure, they said.

Official spot rates were again firmly held at the last levels as there was no change in price of average quality lint as bulk of the business in the ready section was unreported.

But on the other hand New York cotton futures stayed weak as both the contracts fell further on falling demand from the foreign buyers. The maturing March contract was quoted lower by 0.82 cents at 50.12 cents, while the ruling July fell by 1.08 cents at 51.42 cents per lb.

Ready off-take was active which remained confined to Punjab lint, the following being some of the important deals: 8,065 bales from various ginneries including Ahmedpur East and Nurpur Nauranga at Rs2,340 and 500 bales, Rahimyar Khan at Rs2,250.

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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