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KARACHI, Jan 17: Spinners continued to build-up long positions on the cotton market on Thursday as ginners taking a bearish future outlook because of larger unsold stocks remained active sellers at the buyers options.
Prices, both spot and in physical trading are easing, sending nervous signals among the ginners and the consequent hasty selling by the weakers among them.
Fine varieties both from the upper Sindh and the southern Punjab ginneries are available around Rs1,750 per maund, although ready offtake was selective as spinners expect further decline in prices, says a broker.
A vast difference of Rs600 per maund in the selling prices, lowest at Rs1,150 and the highest at Rs1,750, reflects the haste with which ginners are trying to get out of the impasse, dealers said.
Disappointed apparently by the absence of TCP from the falling market, ginners are out to liquidate long positions fearing a virtual crash if they held on to their positions, they added.
The TCP has, according to press reports, indicated to resume purchases of contamination-free lint from the Gothki and Rahimyar Khan ginners around Rs2,037 per maund up to Jan 21, 2002 but it is not clear whether or not ginners still hold sufficient stocks to sell, market sources said.
But leading among the ginners are out to clear the backlog at Rs1,750 or slightly below it without awaiting the intervention of the TCP.
They said the absence of the TCP from the market during the last couple of weeks has allowed the free play to the counter-market forces, which in turn went to the disadvantage of the ginners, being at the receiving end owing to larger unsold stocks.
For the fourth session in a row, ready offtake remained brisk thanks to the presence of spinners and to a lesser extent of exporters and as a result another 25,000 bales changed hands, the following being some of the notable deals including 10,000 bales of Nurpur done at Rs1,725.
SINDH TYPE: 200 bales, Mirpurkhas at Rs1,430, 200 bales, Kandario at Rs1,600, 200 bales, and Sanghar at Rs1,600, 800 bales, Sanghar at Rs1,605, 2,000 bales, Bhiria at Rs1,700, 2,000 bales, Bhiria City Rs1,750, 4,000 bales, Jhole at Rs1,775.
PUNJAB VARIETY: 5,000 bales, Rahimyar Khan at Rs1,725 to Rs1,775, 2,000 bales, Sadiqabad at Rs1,725 to Rs1,750, 2,000 bales, Bahawalpur at Rs1,700 to 1,725, 200 bales, Burewala at Rs1,200, 200 bales, Sahiwal at Rs1,200, 200 bales, Machiwal at Rs1,150, 500 bales, Bahawalnagar at Rs1,500, 1,000 bales, Rajanpur at Rs1,600, 1,000 bales, D.G.Khan at Rs1,550 to Rs1,600, and 200 bales, Bagho Bahar at Rs1,750.
