States’ interventions could be massive in China, India and Pakistan in order to support cotton prices. As a result the textile industry may not take advantage of the significantly lower raw materials.
The stakeholders said Tuesday the cotton prices were once again unable to sustain the new increase in prices and after Tuesday’s rally in New York, futures fell heavily, finally returning to their lower level of last Friday.
A senior trader, Ghulam Rabbani said markets are not boosted by the election of the new US president as economic prospects look rather gloom.
On the international textile market, yarn producers continued waiting for lower cotton prices in the near term with everyone reducing production in the current period.
General intervention: In Pakistan, the state-owned Trading Corporation of Pakistan (TCP) is expected to intervene in the coming days, Mr Rabbani added.
He said demand remained very strong, as reports were released of lower production levels than expected.
Cotton import prices are relatively high, due to the sharp fall in the rupee with domestic yarn processors turning to the Pakistani crop, he said.
He said the spot rate at KCA remained firm and the settlement was declared at Rs 3,200 per maund while fine lint fetched slightly higher prices on growing demand from textile sector above Rs 3,200 per maund.
On Saturday, the spot rate remained intact at Rs 3,200 per maund with higher demand of fine lint throughout the past week.
During past week, around 296,900 bales changed hands, the physical price remained at Rs 3,200 per maund in Sindh while in Punjab the range was a little changed at Rs 3,210 per maund.
He said, “The same scenario was being repeated in India. Cotton prices are mostly above the minimum support price, which was recently set by the government.”
Daily arrivals would however reach a peak by mid-November with state-owned bodies therefore expected to massively buy cotton.
Exports are expected to fall sharply this season, in absence of strong demand from China, and very large quantities would be purchased in order to support prices ahead of an election year.
The minimum price was this year raised by 47 percent and the processors will not be able to pass such a rise in their costs on to their customers.
Lower cotton consumption: He said global cotton use could decline 3 percent in the crop season 2008-09, (August-July), just predicted the International Cotton Advisory Committee (ICAC).
Cotton imports will fall 6 percent to 7.8 million metric tonnes, as a result of much lower demand from China where textile and clothing exports are negatively affected by the economic slowdown.
As a clear sign that demand is weakening, domestic prices continued falling in the last three days in China.
Average price for 328 grade was down from 11,582 yuan per metric tonne on Monday to 11,433 yuan on Thursday, a fall of 149 yuan.
Funds are being transferred to state-controlled administrations in charge of procuring cotton in order to support prices in Xinjiang.
The stakeholders said Tuesday the cotton prices were once again unable to sustain the new increase in prices and after Tuesday’s rally in New York, futures fell heavily, finally returning to their lower level of last Friday.
A senior trader, Ghulam Rabbani said markets are not boosted by the election of the new US president as economic prospects look rather gloom.
On the international textile market, yarn producers continued waiting for lower cotton prices in the near term with everyone reducing production in the current period.
General intervention: In Pakistan, the state-owned Trading Corporation of Pakistan (TCP) is expected to intervene in the coming days, Mr Rabbani added.
He said demand remained very strong, as reports were released of lower production levels than expected.
Cotton import prices are relatively high, due to the sharp fall in the rupee with domestic yarn processors turning to the Pakistani crop, he said.
He said the spot rate at KCA remained firm and the settlement was declared at Rs 3,200 per maund while fine lint fetched slightly higher prices on growing demand from textile sector above Rs 3,200 per maund.
On Saturday, the spot rate remained intact at Rs 3,200 per maund with higher demand of fine lint throughout the past week.
During past week, around 296,900 bales changed hands, the physical price remained at Rs 3,200 per maund in Sindh while in Punjab the range was a little changed at Rs 3,210 per maund.
He said, “The same scenario was being repeated in India. Cotton prices are mostly above the minimum support price, which was recently set by the government.”
Daily arrivals would however reach a peak by mid-November with state-owned bodies therefore expected to massively buy cotton.
Exports are expected to fall sharply this season, in absence of strong demand from China, and very large quantities would be purchased in order to support prices ahead of an election year.
The minimum price was this year raised by 47 percent and the processors will not be able to pass such a rise in their costs on to their customers.
Lower cotton consumption: He said global cotton use could decline 3 percent in the crop season 2008-09, (August-July), just predicted the International Cotton Advisory Committee (ICAC).
Cotton imports will fall 6 percent to 7.8 million metric tonnes, as a result of much lower demand from China where textile and clothing exports are negatively affected by the economic slowdown.
As a clear sign that demand is weakening, domestic prices continued falling in the last three days in China.
Average price for 328 grade was down from 11,582 yuan per metric tonne on Monday to 11,433 yuan on Thursday, a fall of 149 yuan.
Funds are being transferred to state-controlled administrations in charge of procuring cotton in order to support prices in Xinjiang.
