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December 22, 2006
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Friday
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Ziqa’ad 30, 1427
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Cotton prices ease on falling demand
By Our Staff Reporter
KARACHI, Dec 21: Cotton market on Thursday eased modestly from the early week higher levels as some of the ginners lower their asking prices amid falling mill demand. Most of the deals in the fine variety from the Punjab cotton belt were finalised around Rs2,575 per maund, while inferior types were quoted as lower as Rs2,550.
However, quality lots both from the upper Sindh and southern Punjab ginneries were sold at the session’s highest level of Rs2,600 per maund.
“Spinners and mills seem to have become a bit selective as far as quality premiums are concerned,” brokers said, adding “higher crop ideas may have motivated them to play safe”.
A considerable fall in mill ready off-take during the last couple of sessions reflects spinner worries about pressure on future supplies may now have no relevance to developing situation, they said.
Leading ginners who are holding bulk of the unsold stock are worried over the falling mill demand but are not inclined to lower their prices hoping a pick up after mill demand re-emerge, they added.
But some others attributed the relative calm to delivery problems owing to higher freight rates being charged by the cargo haulers and predicted similar conditions may prevail in post-eid sessions.
There was no change in the official spot rates which were quoted unchanged at Rs2,525 per maund for an average quality lots.
New York cotton futures on the other hand were quoted lower by 0.41 and 0.86 cents at 54.62 and 55.14 cents per lb for both the ruling March and the distant May settlements respectively.
Mill off-take was around 20,000 bales, the following being some of the notable deals.
SINDH TYPE: 1,000 bales, Bandhi at Rs2,400-2,460, 2,000 bales, upper Sindh at Rs2,600, 500 bales, Buchari and 400 bales Shahpur Chakkar at Rs2,425.
PUNJAB VARIETY: 3,000 bales, Rahimyar Khan and 1,000 bales, Sadiqabad at Rs2,585-2,600, 1,000 bales, Khanpur at Rs2,600, 1,000 bales, Chistian at Rs2,550, 1,000 bales each Uch Sharif, Bahwalpur and 1,800 bales, Ahmedpur East at Rs2,575.
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