KARACHI, Dec 13: Cotton prices on Monday eased from Saturday's higher levels as ginners lowered their asking prices followed by reports of slowdown in TCP's procurement operations owing to storage problems.
On Saturday, fine lots were sold at the recent high level of Rs2,000 per maund followed by reports that the TCP has increased its procurement limits from each ginners but eased on ginners selling that the TCP has delayed lifting of lint from the ginners owing to storage problems.
"The price-war continues in the cotton trade as both the spinners and ginners are trying to outwit each other after taking refuge in unfounded rumours," says a leading broker. "Indications are that prices are expected to remain stable at the current levels at least for the near-term."
On Saturday, there was a virtual panic among the spinners as leading among them made panic covering purchases, including some deals and lifted about 50,000 bales just in one go.
Some of the prominent deals included 6,000 to 8,000 bales from southern Punjab ginneries, but the market witnessed a reversal the very next day followed by reports that the TCP has slowed down its buying until some additional storage capacity is acquired, dealers said.
But some others said the market could heat up again to peak level above the expected bench mark of Rs2,000 per maund after the prime minister's China visit. The speculation is rife in the market that the export of lint to China may figure in the official talks but it is not clear whether or not the rate could be competitive in the changing world cotton scene, some ginners speculate.
On the price front, the market stood on an even ground, they said, adding that the market's future direction is expected to be guided by the arrival figures of phutti for the fortnight ending Dec 15, 2004.
Official spot rates were, therefore, firmly held at the weekend levels but in some of the deals were reported below them. Ready off take was large totalling about 50,000 bales, the following being some of the notable deals gone through on Saturday evening:
SINDH TYPE: 1,000 bales, Mirpurkhas at Rs1,600 to Rs1,675; 600 bales, Sanghar at Rs1,600 to Rs1,625; and 4,000 bales, upper Sindh at Rs1,925 to Rs2,000.
PUNJAB VARIETY: 10,000 bales, Bahawalpur at Rs1,925 to Rs2,000; 6,000 and 8,000 bales, Uch Sharif, 8,000 bales, Ahmedpur East, and 6,000 bales, Khanpur also at this rate; 6,000 bales, Rahimyar Khan at Rs1,900 to Rs2,000; 4,000 bales, Sadiqabad at Rs1,875 to Rs2,000; 2,000 bales, Liaquatpur at Rs1,900 to Rs1,975; 3,000 and 2,000 bales, Multan and Alipur, respectively, at Rs1,950 to Rs1,975.
| The following are Monday'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. | ||||
| Rate for | Exgin price | Upcountry Expenses | Spot rate ex-Karachi | |
| 37.324 kgs | 1,925 | 50 | 1,975.00 | |
| Equivalent | ||||
| 40 kgs | 2,063 | 50 | 2,113.00 | |
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