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May 31, 2008
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Saturday
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Jamadi-ul-Awwal 25, 1429
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Cotton trading gets dull as fresh supplies awaited
By Our Staff Reporter
KARACHI, May 30: Cotton market on Friday passed through a relatively dull session owing to the weekly closure of Punjab markets but local brokers said some of the spinners sought fresh supplies for ready delivery.
Stray lots of inferior types did change hands below Rs4,000 per maund but ginners were not inclined to lower their asking prices for the fine varieties currently being quoted around Rs4,000 and some of the leading spinners and mills appear to be in an obliging mood, market sources said.
“The local prices are essentially being guided by the supply and demand factor and appear to have no relevance to the international markets,” they said, adding: “Indications are that the lower unsold stocks held by the ginners may continue inspire mill support even beyond the current level of Rs4,000 plus before the arrival of the new crop.”
The New York cotton futures below 70 cents per lb or around 66 cents could well be an attractive bait for those spinners and mills, who still need more supplies before the new crop, are undecided on the import issue owing perhaps to 35 per cent cash margin, they said.
Some months back leading among spinners had made substantial buying at around 73 cents per lb from various sources after the New York cotton futures rose to 12-year peak level of 96 cents per lb, they said.
But most of them are now relying on the local supplies and are not inclined to go for a lengthy process of imports on the perception that new crop will be available by the end of the next month though on a modest scale, some others said.
New York cotton futures on Friday were quoted lower by 0.50 and 0.02 cents per lb at 65.99 and 71.46 cents for both the ruling July and the new crop October settlements, respectively.
But on the other hand official spot rates were firmly held at the last level of Rs3,700 per maund after having consolidated by last two sessions’ increase of Rs100 per maund
Mill ready off-take was slow and amounted to 12,000 bales, done below Rs4,000 per maund.
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