Rise of unsold lint stocks cause offloading

24 Dec '05

2 min read

The Karachi Cotton Association (KCA) spot rate declined to Rs 2,375 per maund, down Rs 15 effecting sales of 13,000 bales.

Decline in prices was due to unsold stocks of around 2.7 million bales.

The off loading by ginners was attributed to the rise in unsold stocks. Rate of seed cotton, (phutti) remained stable.

Mills and spinners improved their stock holding due to increased export orders that required stocks of bales to meet their target, trader sources revealed.

He said prices at the New York cotton futures market were going down, affecting the domestic market. Private sector commercial exporters remained uninterested.

Registration of lint for exports reached around 129,523 bales up December 10. About 74,915 bales were from new crop of 2005-06 and around 54,608 bales were of old crop of 2004-05, said a senior broker.

Prices of cotton were between Rs 2,300 per maund to Rs 2,425 per maund a broker said.The quality lint of Punjab fetched over Rs 2,430 per maund, he added.

As per the figures of KCA, 800 bales of Lodhran were sold at Rs 2,415 per maund, 1,000 bales of Sehar Sultan at Rs 2,385 per maund, 1,800 bales of D G Khan at Rs 2,400 per maund, 2,000 bales of Uch Sharif at Rs 2,415 per maund, 400 bales of Jahania at Rs 2,425 per maund and 400 bales of Bahawalpur at Rs 2,385 per maund.

New York March contract was fixed at 52.85 USC per pound and May contract at 53.58 USC per pound. A Index closed at 56.85 USC/lb and B Index closed at 55.60 USC per pound. China cotton index closed at 14,149 yuan per metric ton.

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