20000103

Active trading marked on cotton market

SHAFI AHMED SYED

KARACHI: Active trading in cotton was marked during the week ended on January 1, 2000, the day new year heralded. The deals were encouraging in the face of TCP inactivity interruptions in bank transactions, prevalence Ramazan and approaching Eid.

The KCA rates committee revised rates upward without much strain. The Niab was up by Rs 28.75 to Rs 1218.75, K-68 up by Rs 11.50 to Rs 1517.75 and MNH 93 up by Rs 34.50 to Rs 1579.50, with sales tax.

WORLD SCENARIO

Cotton futures in New York Cotton Exchange rose by one cent under pressure of fund buying and signal from China that it would be lowering its production estimates.

First session depicted a fall, then onwards futures maintained uppish leaning until market closed on Friday.

At the outset of the week, cotton futures were seen near lows after a flurry of speculative selling drove the market down after long X-Mas holidays, March tumbled to 0.88 cent to 48.86 after trading between 48.80 and 50.20 cents a pound. May lost 0.78 to 50.36 cents a pound.

But then with fund buying and China's pressure March cotton climbed 0.69 cent to close at 49.71 cents after trading between 49.71 and 48.84 cents a pound.

TCP TENDERS

It was learnt that the TCP was looking for markets abroad. According to reports, it has either floated or intends to float international tender for the sale of initially 20,000 bales. The Corporation had plans to dispose of around 40/41 cents.

PRIVATE EXPORTERS

Last week exporters register nearly 100,000 bales with the EPB for export. The total so far registered for exports has been in the region of 310,411 bales. This year export prices are not being quoted. It is reassuring that a change in world scenario is timely.

TCP'S RECESS

TCP's announcement that it was stopping purchases was seen by people which might cause a setback. However it did not happen. It seems that TCP is moving cautiously.

The TCP has announced that it would be active in the market after Eid. In the meantime it has paid Rs 1.4 billion till recently. It was heartening for the ginners who were resolve and had started complaining about the delay in payment.

CRITICISM CONTINUE

But criticise against TCP continues. Now it is for not buying Sindh cotton. A former federal agriculture minister, Talpur, in a statement said it was half hearted in purchasing from Sindh, the result of which is that growers are not even getting Rs 350 for 40 kg, a sum he claimed growers pay for a bag of fertilizer (urea).

However, it seems that a meeting with the ginners the Corporation chief has smoothened some grudge. The Deputy Commissioner said that the TCP Chairman had shown intention of buying Sindh's 'Nadan' and 'Nemis'. TCP claims to have lifted 87,700 helds of nemis and other types.

ABOUT CHEQUES

The All Pakistan Cotton Exports Association (APCEA) vice-chairman revealed a strange matter of not receiving payment through cheques. He said worst but would be exports of value-added goods. He claimed yarn traders are refusing to accept payment through cheques.

The result was that cloth manufacturers were unable to buy raw material from open markets. Now if cheques continued to be refused, orders in hand for exports could not be executed. He explained that this way actually GST was being resisted. He suggested that yarn traders are registered so that refund of ST could be made easy. In the meantime he appealed to the traders of yarn with drawn their action to ensure smooth exports flow.

TAIL PIECE: The consumers of yarn and exporters of value-added goods have urged the officials to take back the facility of refinance for exports of all counts of cotton yarn.

However, spinners reacted on this grounds that facility was paying dividend.

The facility was to last up to December 31, 1999. The fate of facility was not known until writing of this.