Karachi, March 19, 2013 (PPI-OT): Bullish conditions have prevailed in the local cotton market, resulting from the further increase in New York cotton futures, and prices of imported cotton. Those ginners holding better quality cotton stocks have increased asking prices.
However, turnover remained low as most mills were cautious buyers and were reluctant to chase prices higher. Business in better grade lots has been reported at between Rs. 6,700 to Rs. 7,000 per maund (roughly 8325/87.00 US cents per Ib), ex-gin. Average quality cotton has attracted around Rs 6,000 to Rs. 6,500 per maund.
On the import front, sales of upland cotton, for prompt shipment, CFR Karachi comprised Indian Shankar-6 at 96.00/97.00 US cents per Ib, Brazilian Strict Low Middling Light Spot at 93.00/94.00 cents, and US lower Micronaire recaps, at 100 cent points on call’ New York cotton futures cover month.
Longer staple deals involved US Pima recaps at between 130.00 to 140.00 US cents per Ib, Egyptian G86 at 130.00 cents, and G.88 at 140.00 cents. After a late start to early sowing, work is now progressing well. However, the early-sown area seems likely to be much reduced, compared with last year.
The significance could be potentially smaller arrivals during July and August, thus perhaps leaving mare cotton exposed to subsequent, monsoonal weather conditions, and a requirement for mills to cover the resultant gap elsewhere. 2012/13 crop arrivals the pace of arrivals from the current crop continues to slacken.
Data from the Pakistan Cotton Growers Association as at March 15 show 2012/13 crop arrivals totalling the equivalent of 12,845,070 bales. Of that amount, 11,618,033 bales had been sold to domestic mills and 328,931 to exporters, leaving a ginned and unginned stock of 898,106 bales. Final pressings are not expected to exceed 13 million bales.
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