Pakistan: further active import demand
Firm conditions have prevailed in the local cotton market. Domestic cotton rates have continued with their upward trend, as growers have resisted releasing seed cotton stocks at lower prices. Despite a steady flow of arrivals, growers have been able to resist selling pressure so far. Ginners have thus remained tight sellers and mills have been obliged to pay higher prices to secure stocks. Better grades have commanded very firm prices and some ginners have held back their stocks in the hope of future higher prices.
The range of asking rates for upper Sindh/Punjab cottons has increased by a further Rs.50 and extended to a high of Rs.5,350 per maund, or around 62.45 US cents per lb, while inferior quality cotton from lower Sind has traded between Rs. 4,800/4,950 per maund.
On the import front, with firm domestic prices, active mill buying interest has persisted. Further business has included a few thousand tonnes of Burkina Faso Type BOLA/s 1-1/6” at between 63.50/64.00 cents per lb, mainly for prompt shipment, CFR Karachi. A good volume of Brazilian SLM 1-1/18” has been sold at between 700/750 US cent points ‘on’ December ICE cotton futures and Indian Shankar-6 (old crop) at a similar price to the West African. It is estimated that overall import business during this week may have exceeded 10,000 tonnes.
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