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KARACHI, Oct 19: Cotton market on Friday showed firm trend as spinners and mills continued to build-up long positions at the current level on predictions of major boost to exports of textiles followed by some positive developments including increase in quota and duty waiver.
The official spot rates were quoted higher by Rs15.00 per maund, although quality lots are being sold well above it in physical trading.
The arrivals of phutti into the ginneries for the fortnight ended on Oct 15, at 1.711 million bales as compared to comparable figure of 2.260 million bales for the same period last year was, however, not relevant to the current price line, which is generally guided by the supply and demand factors, dealers said.
The condition of the crop is stated to be good and official projections of another bumper crop well above 10 million bales is claimed to be a possibility based on the recent private agencies estimates, they added.
They attributed the slow arrivals of phutti to late sowing of the crop because of irrigation water crisis at that time, the pace of arrivals will pick by the first week of next month.
The perception that the US may follow the precedence of its counterparts in the European Union kept the spinner morale at the peak level as they continued to make anticipatory buying against their forward sales of cotton yarn, dealers said.
The interesting feature was that bulk of the buying is being made below the higher rate of Rs1,700.00 per maund for the fine type from the Punjab ginneries, while central Sindh variety is now selling at a discount as compared to its counterpart from the Punjab.
Cotton analysts said the fact that prices were stable below the Rs1,700.00 or around this level for the last couple of sessions showed that they fell in line of the parity level of the both the ginner and the spinner but the grower was said to be a loser.
New York cotton futures eased by 0.35 and 0.13 cents per lb at 31.18 and 33.10 cents per lb for both the maturing October and the ruling December contracts.
Ready offtake was active as the Karachi Brokers Advisory Committee reported about 8,000 bales changed hands, the following being some of the notable deals for Friday:
SINDH TYPE: 20 bales of Tando Adam at Rs1,62.00, 400 bales of Kot Deji at Rs1,700.00 and 200 bales of Shahpur Chakkar at Rs1,625.00.
PUNJAB VARIETY: 200 bales of Chishtian at Rs1,650.00, 200 bales of Jhang at Rs1,640.00, 400 bales of Hasilpur at Rs1,710.00, 400 bales of Bahawalnagar at Rs1,650.00, 400 bales of Gojra at Rs1,675.00, 400 bales of Alipur at Rs1,675.00, 400 bales of Sahiwal at Rs1,665.00, 400 bales of Haroonabad at Rs1,685.00, 400 bales of Kheror Pacc at Rs1,700.00, 400 bales of Jalalpur at 1,725.00, 400 bales, each Sadiqabad and Lodharan at Rs1,725.00 and 1,200 bales of Rajanpur at Rs1,700.00.
