950826

Lint prices retreat

in new crop sales

DR ZAFAR HASSAN

KARACHI: The new crop (1995-96) lint prices moved downwards on Saturday as the week opened with losses of about Rs 50 per maund, sustained in various offerings and sales from Sindh styles as an estimated 2100 bales were traded till the afternoon.

Thus lint sale of 200 bales from Sultanabad was noted on Saturday morning at Rs 2050 per maund, but later in the day about 1500 bales or so from Shahdadpur, Jhol, Sanghar, Mirpurkhas and Tando Adam were all recorded at Rs 2100 per maund. This contrasts with reported sale of new crop styles from Sindh transacted at Rs 2150 per maund on last Thursday. Lint prices tended to be easier on perception that more cotton arrivals are in store, provided the weather remains conducive. New crop condition continues to be reported as good. Generally seed-cotton (kapas) prices were steady at Rs 850 per 40 kgs for the new crop in Sindh, but some sales of seed-cotton were also reported as low as Rs 840 per 40 kgs and as high as Rs 860 per 40 kgs. The cotton-seed (Binola/Kakra) price was given as Rs 240 to Rs 245 per maund on Saturday.

The New York cotton futures price fell sizeably on Thursday, for the nearby months on news of poor mills consumption in July 1995, in the U.S.A. and improving weather conditions there. However, New York prices recouped moderately on Friday. Thus on Thursday, the October 1995 delivery closed limit down at US Cents 81.46 per pound (down by 300 points), December 1995 closed at US Cents 79.34 per pound (down by 287 points), while the March 1996 delivery closed at US Cents 80.40 per pound (down by 268 points). Then on Friday, the October 1995 delivery closed at US Cents 81.50 per pound (up by 4 points), December 1995 delivery closed at US Cents 79.72 per pound (up by 38 points), while the March 1996 delivery closed at US Cents 80.55 per pound (up by 15 points).

According to one report, some sales of 20/1 cotton yarn has taken place locally from Rs 385 to Rs 390 per 400 pounds, but the conversion cost given at Rs 110 per ten pounds, together with the high cost of cotton, is still not helping the spinners to cut down their losses. There were also reports in the market that the Cotton Export Corporation (CEC), is likely to resume sale of its imported CIS cotton within two or three days beyond its earlier reported sales of 60,000 bales or so. According to another report, a few hundred bales of new crop (1995-96) Pakistan cotton of Afzal type, staple length of 1-1/32 of an inch, was sold at US Cents 82 or 83 per pound on C and F Chittagong basis recently for September/October 1995 shipment.

Later in the afternoon, sale of another 400 bales new crop cotton from Sultanabad was reported at Rs 2050 per maund. There were also reports of some lowness of seed-cotton arrivals reported by a few ginning factories in Sindh. Later in evening, a prominent Sultanabad ginner sold another 200 bales of cotton at Rs 2000 per maund. Therefore, cumulative cotton sales for the day were assessed at 3000 bales or more by the evening.