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KARACHI, Feb 4: Trading on cotton market was moderately active in the absence of strong mill demand and stray lots lifted by the exporters failed to generate sympathetic buying from the leading group of spinners.
Spinners kept to the sidelines analysing the impact of impoved arrival figures of phutti for the fortnight ended Jan 31, showing a decline of 3.68 per cent as compared to the last year’s figure of 0.344 million bales at 9.113 million bales.
Out of the processed lint, spinners purchased about 7 million bales, TCP 0.118 bales and the exporters only 21,300 bales, leaving an unsold stock of 1.933 million bales with the ginners.
Floor brokers said the arrival figure had shown a progressive recovery after early fall by more than 30 per cent, but the current pace of arrivals reflect that the total could be above 10 million bales mark.
However, it was uncertain at this stage to say something about the direction of the market, they said, although higher unsold stocks generally pushed prices lower in the final analysis.
But much will depend on the lifting of spinners and mills in the coming months as well as the holding capacity of the ginners, they added.
Although the TCP officials claim that they are very much in the market and are buying contamination-free lint from the model factories in the southern Punjab, the impact of its presence was, however, not visible in the price line.
But its total tally as reported by the Pakistan Cotton Ginners Association (PCGA) in its fortnightly arrival report is too small to influence the price line, dealers said.
Meanwhile, the high-ups of the Karachi Cotton Association (KCA) has, in a representation, urged the government to allow the resumption of hedge trading to stabilize the market.
“The resumption of hedge trading could ensure fair prices to the party in trade, including growers, ginners and spinners,” it claims.
Ready offtake was modestly higher at 12,000 bales, the following being some of the notable deals:
SINDH TYPE: 6,207 bales of Nawashah at Rs1,600 and 200 bales of Saleh Pat also at Rs1,600.
PUNJAB VARIETY: 700 bales of Kotla Pathan at Rs1,550, 200 bales at Rs1,610, 2,000 bales, Nayabad at Rs1,500, 200 bales, Khanpur at Rs1,550, 800 bales, Yazman at Rs1,485 to Rs1,500, 500 bales, Sadiqabad at Rs1,550 and 600 bales of Vehari at Rs1,200.
