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INDIA: Fine lint remains in demand at cotton market

A senior trader, Ghulam Rabbani said the spot rate at Karachi Cotton Association (KCA) remained firm and the settlement was declared at Rs 3,350 per maund with reports about a contract that was concluded in Sindh for 400 bales at Rs 3,600 per maund. He said spinners remained eager for fine lint on slightly higher prices on back of growing demand of yarn in domestic as well as in international markets.

He said Pakistan Cotton Ginners Association (PCGA) released fortnightly cotton arrival report lat night, which stood at 11.353 million bales till April 30, 2008. “The arrival is short around 1.1 million bales during same period last year.” He said leading players were rethinking for a future strategy to cope up with the shortfall as the demand was growing amid rising international prices of cotton. The import price would go further higher.

A senior broker said physical market spot rate remained at Rs 3,350 per maund and Rs 3,600 per maund with fine quality that fetched slightly higher rates around Rs 3,610 per maund. The battle between supply and demand reasserted itself in the cotton market as New York futures prices retreated as the May contract’s first notice day approached this week. The big bang failed to materialise near 1.25 million bales of certificated stocks shoved prices lower in line with the economist’s law of supply and demand. The large speculative funds remain very keen on cotton, however, they will be much less aggressive above 74 cents on July basis. staff report.

Source: Agencies • News Courtesy: BharatTextile.com