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June 04, 2008
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Wednesday
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Jamadi-ul-Awwal 29, 1429
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Firm trend witnessed on cotton market
By Our Staff Reporter
KARACHI, June 3: Cotton market maintained a firm trend on Tuesday as supply and demand factors again dominated trading amid reports that ginners are not inclined to lower their asking prices and for good reasons too, floor brokers said.
Another forward deal of 200 bales, signed by a Sultanabad ginner at Rs3,800 per maund for delivery on Aug 25, signals that irrespective of the new crop position and production level, the lint may not be that cheaper as it had been during the last couple of years, they said. And added to it could be the sympathetic price flare-up spilled over from the other markets, irrespective of the supply position, both from the local and foreign sources, they said.
“We are planning the new year buying on an identical lines on the perception that the new crop lint could be as expensive as other industrial commodities,” said a leading spinner, adding: “forward deals in the new crop around Rs4,000 per maund indicate lint consumers are fully aware of the developing situation on the cotton front.”
But some others said the current fall in the New York cotton futures below the benchmark of 70-cent per lb at 65 cents per lb could have a negative impact on the ruling prices elsewhere as it is considered the trend-setter on the world markets.
Meanwhile, reports reaching here from some of the cotton growing areas indicates that Monday’s rain in the upper Sindh cotton belt may have caused re-sowing in some of the areas where plants were too tender or were still in the germination stage.New York futures remained under pressure followed by reports of falling world demand and were quoted modestly lower by 0.30 and 0.41 cents per lb at 65.44 and 70.75 cents for both the ruling July and the forward October contracts, respectively.
But official spot rates on the other hand were again firmly held at the last level amid slow trading.
The following are some of the deals finalized on Tuesday evening: 1,000 bales, Rahim Yar Khan at Rs4,000, and 500 bales, Khipro at Rs3,500.
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