960427

Cotton business

at standstill

DR ZAFAR HASSAN

LAHORE: The ready cotton business came to a standstill on Saturday as no sales were reported till the afternoon. The only news on Saturday was the sale of 1200 bales cotton which reportedly took place last Thursday evening at varying rates ranging from Rs 2200 to Rs 2250 per maund, but the quality of lint in this transaction was said to be below the normal standard.

However, the notional prices for the lower Sindh style on Saturday reportedly ranged from Rs 2150 to Rs 2200 per maund. The price idea for cottons from the Khairpur district was said to range from Rs 2275 to Rs 2300 per maund, while the price idea for the upper Sindh variety (K-68) was said to be about Rs 2350 per maund ex-gin.

The latest news concerns the speculation that the cotton exporters still have anywhere from Rs 150,000 to 200,000 bales (of 170 kgs each) of unshipped cotton in their stocks, most of which not be dispatched to the foreign destinations but may find their way into the local market. Similarly, some of the mills carrying surplus cottons to the tune of 250,000 or even 300,000 bales may also somewhat pressurise the local lint market for some time, as some of the mills have bought more cotton than they need.

According to the reports being received from southern Sindh, the climate there is now said to be quite conducive for the early arrival of the 1996-97 Cotton Crop, viz up to 100,000 bales (of 170 kgs each) by the end of July, 1996 and possibly up to a total of 200,000 or 300,000 bales till the end of August, 1996. However, the behaviour of the climate would remain crucial for the routine arrival of the next cotton crop (1996-97) in the July/August period.

It is interesting to note that while the export registration of cotton with the Export Promotion Bureau (EPB) was static since the past several days, i.e. 2,322,009 bales (of 170 kgs each) up to the April 23, 1996. the actual shipments of the 1995-96 raw cotton were recorded higher at 1,778,226 bales till the April 24, 1996. The actual shipments of cotton from Pakistan are continuing to increase at a steady pace, but may end up between 1.85 to 1.9 million bales only during the course of this season, which in itself would be a wholesome cotton export performance by the private sector, being one of the highest shipment rates in any one year in the past half a century.

The Karachi Cotton Association (KCA) spot rates remained unchanged on Saturday. The spot rate for Niab-78 was Rs 2210 per maund, that for K-68 Rs 2380 per maund, and for MNH-93, it was determined at Rs 2430 per maund.