COTTON REPORT
Prospects of good crop after fresh rains and improved picking operation pushed the rates down sharply in the cotton market on Friday, dealers said. The Karachi Cotton Association (KCA) official spot rate was down by Rs 75 at Rs 2925, they added. Cotton prices in the ready market have been very prone to fluctuate according to the weather condition, particularly rains which have been falling off and on with interruptions during the past couple of weeks in Sindh. Both Sindh styles and lint from Punjab lost nearly Rs 125 per maund (37.32 kgs) on Thursday morning compared to the overnight rates.
Sindh styles which were selling between Rs 3,150 to Rs 3,175 per maund (37.32 kgs) on last Wednesday started selling at progressively lower rates on Thursday morning viz. Rs 3,125, Rs 3,100, Rs 3,075 and Rs 3,050 per maund. Punjab lint which was generally selling between Rs 3,250 to Rs 3,300 per maund on last Wednesday started selling decreasingly at lower rates in the afternoon ie Rs 3,125, Rs 3,100, Rs 3,075 and Rs 3,050 per maund.
Seedcotton (kapas/phutti) which was selling from Rs 1,375 to Rs 1,410 per 40 kgs on last Wednesday in Sindh sold lower on Thursday between Rs 1,325 to Rs 1,350 per 40 kilogrammes. In the Punjab, seedcotton which was selling between Rs 1,550 to Rs 1,625 per 40 kgs sold lower on Thursday from Rs 1,500 to Rs 1,525 per 40 kilogrammes.
According to one report, about 15,000 to 17,000 bales are now being ginned daily in both Sindh and Punjab. However, cotton prices may only come down when daily output figure goes to 35,000 bales or more which may take another few weeks.In the evening, though cotton prices started being quoted higher compared to prices prevailing earlier in the day, mills remained cautious buyers as they had covered some of their immediate requirements previously. Moreover, financial stringency and mostly depressed or uncertain New York futures put mills buying in a cautionary mode.
Domestic cotton market is likely to settle down only after another 12 to 15 days when weather vagaries may recede gradually and bring optimism to the crop output numbers. Even up to now, growers remain hopeful that 14 to 15 million bales (170 kgs) may be harvested in Pakistan this season (2007-08).With mills consumption still being projected around 16 million domestic size bales this year, and import of 2 or 3 million bales (170 kgs) or even more remains a veritable possibility. There is a section of the spinning industry which is fighting for its survival, and also portions of weaving sector are finding it hard to make ends meet because of increased yarn prices, but the bulk of the textile industry is likely to continue with its operations despite the projected adversities. According to official report, national sowing target was at 3.28 million hectares but reportedly 3.25 was actually sown to cotton in 2007-3008 season with Punjab province at 2.56 million hectares (=78.70%), Sindh at 0.64 million hectares (=19.60%) and Balochistan/N.W.F provinces at 0.056 million hectares (=1.70%). The production target has been fixed at 14.141 million 170-kg bales at the rate of kg 740 per hectare being the expected yield
Other news indicated that due to moderate to medium flooding in the rivers, an additional cotton output estimated from 500,000 to 700,000 bales may be obtained from the riverine areas this season. If the cotton arrivals continue at current pace and the rains do not delay or damage the crop significantly, cotton prices should move downwards. New York Cotton Lint prices on New York Cotton Exchange also staged sharp decline. Ruling October, 07 contract lost 375 c/pts and December 07 contract shed c/pts 374 to close at 55.50 and 57.50 respectively. Only about a month back, prices on NY Cotton Exchange were ruling around December 68 level and trade was expecting it to further advance up to the level of 72-73 but some changes in US Government policies regarding tightening of credit and financial facilities which adversely affected the overall prices of commodities. Reportedly, 70% of US GDP is based on consumer spending and any change in it would be reflected in retail prices. Stock markets have been adversely affected and markets have shed index prices up to 15 % in short time.
Interbank closing rates for dollar on Friday. Buying Rs 60.67 Selling Rs 60.69
EXPORT MARKET There is a lot of confusion in the export markets ovet the quality yarn and fabrics availability. Most of the mills are not offering anymore till the time of new crop arrival and exact price situationin end of August to mid September. Only a few mills having goodquality cotton stocks are offering yarn at comparatively high prices. Shifting of mills to finer counts. Coarser counts prices are firm due to shortfall in availability.Good qualilty of 20/1 cd yarn asking prices ranging is US$ 400 to 415/bale (US$ 2.20/kg to 2.30/kg ) on fareast basis. Korea, Hong kong, Taiwan, China still bidding at low prices (US$ 2.15/kg to 2.20/kg) but mills refused their bids. Fabric offers are also limited due to good yarn shortage in domestic market and high yarn prices. Hence mills are either not offing for the time being or only offering 2/3 regular qualities. The cotton prices in pakistan are expected to remain firm till the speedly arrival of new crop around end August to mid Sep, it is advisalbe to book some yarn/fabrics for immediate consumption and cover requirements till Sep at reasonalbe prices from goods mills have goods cotton / yarn socks to avaid excessive quality problem. THANKING YOU FOR YOUR CO-PERAITON IN ADVANCE BEST RGDSWORLD TEXTILE TRADING TAHIR CELL : 0092 333 422 44 33 DIRT : 0092 42 571 39 00 FOR MSN
worldtex_1997 ( skype) worldtex_1997 (hotmail) worldtex_1997 ( yahoo) 309, LAND MARK JAIL ROAD,LAHORE,PAKISTAN
Tel: +92-42- 571 3700/3800/3900
Fax: +92-42- 571 3600
info@worldtex-trading.com Tahir@worldtex-trading.com Worldtex@brain.net.pk
Sindh styles which were selling between Rs 3,150 to Rs 3,175 per maund (37.32 kgs) on last Wednesday started selling at progressively lower rates on Thursday morning viz. Rs 3,125, Rs 3,100, Rs 3,075 and Rs 3,050 per maund. Punjab lint which was generally selling between Rs 3,250 to Rs 3,300 per maund on last Wednesday started selling decreasingly at lower rates in the afternoon ie Rs 3,125, Rs 3,100, Rs 3,075 and Rs 3,050 per maund.
Seedcotton (kapas/phutti) which was selling from Rs 1,375 to Rs 1,410 per 40 kgs on last Wednesday in Sindh sold lower on Thursday between Rs 1,325 to Rs 1,350 per 40 kilogrammes. In the Punjab, seedcotton which was selling between Rs 1,550 to Rs 1,625 per 40 kgs sold lower on Thursday from Rs 1,500 to Rs 1,525 per 40 kilogrammes.
According to one report, about 15,000 to 17,000 bales are now being ginned daily in both Sindh and Punjab. However, cotton prices may only come down when daily output figure goes to 35,000 bales or more which may take another few weeks.In the evening, though cotton prices started being quoted higher compared to prices prevailing earlier in the day, mills remained cautious buyers as they had covered some of their immediate requirements previously. Moreover, financial stringency and mostly depressed or uncertain New York futures put mills buying in a cautionary mode.
Domestic cotton market is likely to settle down only after another 12 to 15 days when weather vagaries may recede gradually and bring optimism to the crop output numbers. Even up to now, growers remain hopeful that 14 to 15 million bales (170 kgs) may be harvested in Pakistan this season (2007-08).With mills consumption still being projected around 16 million domestic size bales this year, and import of 2 or 3 million bales (170 kgs) or even more remains a veritable possibility. There is a section of the spinning industry which is fighting for its survival, and also portions of weaving sector are finding it hard to make ends meet because of increased yarn prices, but the bulk of the textile industry is likely to continue with its operations despite the projected adversities. According to official report, national sowing target was at 3.28 million hectares but reportedly 3.25 was actually sown to cotton in 2007-3008 season with Punjab province at 2.56 million hectares (=78.70%), Sindh at 0.64 million hectares (=19.60%) and Balochistan/N.W.F provinces at 0.056 million hectares (=1.70%). The production target has been fixed at 14.141 million 170-kg bales at the rate of kg 740 per hectare being the expected yield
Other news indicated that due to moderate to medium flooding in the rivers, an additional cotton output estimated from 500,000 to 700,000 bales may be obtained from the riverine areas this season. If the cotton arrivals continue at current pace and the rains do not delay or damage the crop significantly, cotton prices should move downwards. New York Cotton Lint prices on New York Cotton Exchange also staged sharp decline. Ruling October, 07 contract lost 375 c/pts and December 07 contract shed c/pts 374 to close at 55.50 and 57.50 respectively. Only about a month back, prices on NY Cotton Exchange were ruling around December 68 level and trade was expecting it to further advance up to the level of 72-73 but some changes in US Government policies regarding tightening of credit and financial facilities which adversely affected the overall prices of commodities. Reportedly, 70% of US GDP is based on consumer spending and any change in it would be reflected in retail prices. Stock markets have been adversely affected and markets have shed index prices up to 15 % in short time.
Interbank closing rates for dollar on Friday. Buying Rs 60.67 Selling Rs 60.69
EXPORT MARKET There is a lot of confusion in the export markets ovet the quality yarn and fabrics availability. Most of the mills are not offering anymore till the time of new crop arrival and exact price situationin end of August to mid September. Only a few mills having goodquality cotton stocks are offering yarn at comparatively high prices. Shifting of mills to finer counts. Coarser counts prices are firm due to shortfall in availability.Good qualilty of 20/1 cd yarn asking prices ranging is US$ 400 to 415/bale (US$ 2.20/kg to 2.30/kg ) on fareast basis. Korea, Hong kong, Taiwan, China still bidding at low prices (US$ 2.15/kg to 2.20/kg) but mills refused their bids. Fabric offers are also limited due to good yarn shortage in domestic market and high yarn prices. Hence mills are either not offing for the time being or only offering 2/3 regular qualities. The cotton prices in pakistan are expected to remain firm till the speedly arrival of new crop around end August to mid Sep, it is advisalbe to book some yarn/fabrics for immediate consumption and cover requirements till Sep at reasonalbe prices from goods mills have goods cotton / yarn socks to avaid excessive quality problem. THANKING YOU FOR YOUR CO-PERAITON IN ADVANCE BEST RGDSWORLD TEXTILE TRADING TAHIR CELL : 0092 333 422 44 33 DIRT : 0092 42 571 39 00 FOR MSN
worldtex_1997 ( skype) worldtex_1997 (hotmail) worldtex_1997 ( yahoo) 309, LAND MARK JAIL ROAD,LAHORE,PAKISTAN
Tel: +92-42- 571 3700/3800/3900
Fax: +92-42- 571 3600
info@worldtex-trading.com Tahir@worldtex-trading.com Worldtex@brain.net.pk
