KARACHI, Nov 29: Cotton market on Thursday hummed with activity as spinners indulged in panic buying and lifted about 50,000 bales and brokers claim a good part of mill demand remained unsatisfied.
After staying out of market for the last couple of sessions, spinners were back in the arena haunted each lot like the lion just out of the cage, giving a pleasant surprise to the ginners, who were unable to decide how to react to the changed scenario.
“Spinners were back in the market after having decided in their Wednesday’s meeting here the broad outlines for the future lint buying strategy,” floor broker Naseem Usman claims.
He said the broad consensus among the leading Sindh zone spinners was, among others, not to buy lint above the fixed rate of Rs2,075 per maund, no unfix bargains, and no premium rate for the contamination-free lint as earlier decided at the rate of Rs175 and Rs200 per bale.
But the spinners were not inclined to deny or confirm the broad outlines for the new lint cotton buying strategy. However, massive ready activity reflects that most of the deals were finalized in line with the above specified rates.
Incidentally, most of the big deals, ranging from 1,000 to 4,000 bales purchased by single parties are in line with the mutually agreed rate of Rs2,075.00 per maund.
The market sources are, however, of the opinion it may not be that easy to contain the prices within the unofficially fixed rates as in the final analysis they will be largely guided by the supply and demand factors.
The cotton market is currently passing through an interesting situation as the battle of wits between the contenders is at its peak levels and no one is sure at the moment who will be the winner, market sources said.
Ready business was fairly brisk as for the second time during the current season the largest-single session offtake is recorded at about 50,000 bales, previous record being 0.1m bales.
The following are some of the notable deals, which gone through late on Wednesday evening:
SINDH TYPE: 2,000 bales, each from Gothki and Dharki at Rs2,075 to Rs2,100, 500 bales, Mehrabpur at Rs1,850, and 200 bales of More at Rs1,875.
PUNJAB VARIETY: 1,000 bales of Bahawalnagar at Rs1,900, 1,000 bales, Muhammadpur at Rs2,050, 4,000 bales, D.G. Khan at Rs2,000, 3,000 bales, Rahimyar Khan at Rs2,075, 1,000 bales, Ahmedpur east at Rs2,075, 4,000 bales, Khanpur at Rs2,070 to Rs2,075, 1,000 bales, Sadiqabad at Rs2,075, 1,000 bales, Rahimyar Khan at Rs2,075 to Rs2,100, 4,000 bales, Bahawalpur at Rs2,075 to 2,100, 600 bales, Yazman at Rs2,075, 200 bales, Hasilpur at Rs2,070, 400 bales, Mian Channu at Rs1,900, 200 bales, Chichawatni at Rs1,900, and 400 bales of Liquatpur at Rs2,000.
