In a surprising way, when the All Pakistan Textile Mills Association (Aptma) expecting for bumper cotton crop for the current season, the ginners curtailed the supply of seedcotton to push up the rates, dealers said on the cotton market on Monday. Official spot rate maintained overnight level at Rs 5,850, they said. As a result of ginners' move, trading activity came down in the ready business, over, 20,000 bales of cotton changed hands between Rs 5650-6100, they said.
Prices of seedcotton (phutti) in Sindh were sharply up by Rs 100-200 by Rs 2600-2900, while, rates in Punjab followed same path, gaining Rs 100-150 to Rs 2700-3000, they said.
Explaining the latest direction in the market, some brokers said that this is an open secret, when ginners feel an increase in seedcotton (phuti) arrivals, they create an artificial shortage of the stuff to raise prices.
Chairman Aptma Ahsan Bashir said that country may get 15 million cotton production, which expectedly would help in increasing the earnings by exports of textile product, particularly yarn. Cotton analyst Naseem said if phutti arrivals are good, so how the ginners can create shortage to earn profit. Other analysts said that it is their right to save themselves from the future losses because bumper crop mean, fall in the rates and so they will not achieve the cost of production.
Following deals report: 1000 bales from Shahdadpur at Rs 5700-5800, 800 bales from Tando Adam at Rs 5700-5750, 1000 bales from Sanghar at Rs 5650-5800, 1000 bales from Mir Pur Khas at Rs 5650-5700, 2000 bales from Khairpur at Rs 6000, 400 bales from Layyah at Rs 5975, 600 bales from Khanewal at Rs 5975, 400 bales from Shujabad at Rs 5975, 200 bales from Bahawal Nagar at Rs 6000, 600 bales from Dera Ghazi Khan at Rs 6000, 400 bales from Muhammadpur Dewan at Rs 6000, 400 bales from Faqirwali at Rs 6000, 800 bales from Hasilpur at Rs 6000, 3000 bales from Rahim Yar Khan at Rs 6000, 1000 bales from Haroonabad at Rs 6000, 400 bales from Fort Abbas at Rs 6000, 400 bales from Sadiqabad at Rs 6000, 1000 Rajanpur bales from at Rs 6100, 2600 bales from Mianwali at Rs 6100 and 800 bales from Fazilpur at Rs 6100, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 10.11.2012
===========================================================================
37.324 Kgs 5,850 155 6,005 6,005 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,269 155 6,424 6,424 NIL
===========================================================================
Comments
Comments are closed.