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Analysis

Lint prices maintain

upward drive

DR ZAFAR HASSAN

KARACHI: New crop cotton from Sindh maintained its upward drive on Tuesday as 1200 to 1300 bales of lint were sold till the afternoon from Rs 2125 to Rs 2150 per maund. In the morning, 100 bales of Tando Adam were sold at Rs 2125 per maund. Later, several Sindh stations like Mirpurkhas, Sultanabad, Shahdadpur and Tando Adam sold about 200 bales each of cotton at Rs 2150 per maund.

The seed-cotton (kapas) prices for Sindh was given as Rs 870 per 40 kgs. The reason for higher price of seed-cotton was said to be due to demand from increasing number of ginning factories who want to procure it. In the evening, 200 bales from Sultanabad and 100 bales each from Shahpur Chakar and Sanghar were further sold at Rs 2150 per maund, totalling new crop sales to about 1600 bales for the day.

In the Punjab, initial reports Bahawalnagar, Sahiwal, Pakpattan and Chistian indicate that seed-cotton arrival for the new crop (1995-96) there may commence on or about the 12th of September, 1995. At least one prominent ginner from Maddarsah/Chistian is said to be offering new crop Punjab lint at Rs 2150 per maund for delivery on or about 15th of September, 1995. Reports from the aforesaid stations indicate that cotton plants at this stage are bearing 60 to 70 bolls (Tindas) per plant this year compared to 40 or 45 bolls last year.

Seed-cotton (kapas) price in the Punjab, which has started trickling in some of the stations mentioned above, is reportedly ranging from Rs 725 to Rs 750 per 40 kgs.

The Cotton Export Corporation (CEC) is said to be preparing to offer about 18,000 bales of its imported CIS cotton within the next couple of days at prices ranging from Rs 2300 to Rs 2350 per maund, according to its quality or grade.

Current crop price idea for lint from Rahimyar Khan was said to range from Rs 1950 to Rs 1980 per maund. The overall new crop condition is said to be good, hopefully to yield 10 million bales (of 170 kgs. each) or more.

In foreign news, cotton prices on the New York cotton futures market again moved up on Monday on reported rains and concerns regarding insect infestation in the Carolinas and Texas respectively. Thus, the New York cotton futures market remains quite volatile and arratic. On Monday, October 1995 delivery closed at US cents 82.70 per pound (up by 120 points), the December, 1995 delivery closed at US cents 81.54 per pound (up by 182 points), while the March 1996 delivery closed at US cents 82.55 per pound (limit up by 200 points). Some traders feel that according to the present assessment, the upward price drive is overdone.

Except for Europe, most of the textile industries in the Far East, India, Pakistan and even in the USA are still said to be in dull straits. Europeans are suffering less as they reportedly scrapped a considerable amount of their textile capacity due to the recession of the past several years.