960414

Low level of reported

cotton sales

DR ZAFAR HASSAN

LAHORE: The cotton sales reported till Sunday afternoon were low in volume as now the spinning mills are attempting to resist any increase in cotton prices being demanded by the ginners. It appears that, by now, the cotton ginners would probably have unsold stocks of 300,000 bales of cotton with them, which are likely to be unloaded within the next few weeks. The cotton ginners are said to have sold up to 150,000 bales cotton last week to the spinners. In fact, the ginners in Sindh now mostly have odd lots left with them. Thus, in their individual capacity, the ginners do not apparently have large accumulation of stocks with them. Indeed several cotton exporters also unloaded their cotton stocks in the market on Sunday, which the mills picked up readily.

The ginners continued to quote high prices for their cottons, which the spinners mostly found to be out of their parties, even though the condition of the textile industry has notably improved over the past several months. According to one cotton broker, however, cotton yarn prices had fallen by a few rupees per ten pounds on Sunday.

Due to the standoffish stance persisting between the buyers and the sellers in the cotton market on Sunday, an element of pause appeared on the market, either the spinners are waiting for something unexpectedly favourable to happen on the cotton market, or the ginners are visibly satiated with their profit performance already accrued to them, Sunday saw lackluster activity in the cotton exchange at Karachi. Mostly, however, the 1995-96 cotton is being now viewed as having been produced, processed and practically marketed already, leaving just two or three hundred thousand bales (of 170 kgs. each) for disposal. Thus the needy spinners may now do well to explore the foreign offerings for the early import of cotton into Pakistan to last till the advent of the new 1996-97 season in September, 1996.

Till Sunday afternoon, 200 bales of cotton from Tando Adam, 200 bales from Mirpurkhas, and 1300 bales from Jhol area, each said to have sold at Rs. 2250 per maund. The Mirpurkhas lint having been sold by an exporter to a textile mill on ex-Karachi basis. In the Khairpur District, 452 bales from Kot Diji reportedly sold at Rs. 2275 per maund.

In the Punjab, 154 bales of lower quality lint from Rajanpur is said to have sold at Rs. 2250 per maund. However, 1,000 bales of better lint from Multan is said to have sold at Rs. 2475 per maund.

As the Eid-ul-Azha holidays are arriving by the end of this month, to be preceded by weekend holidays here and abroad, perhaps the cotton ginners in the Punjab and Sindh may be tempted to offload most, if not all, of their unsold cotton stocks before that time and call an end to the season and leave for the cooler climates of the hills, or their hearth and homes, and prepare a clean slate for the next season (1996-97) in August or September, 1996.