KARACHI, Nov 19: Cotton prices on Tuesday maintained their downward drift on hasty selling by ginners followed by larger than market arrivals of phutti into the ginneries.
Growers have virtually flooded the ginneries with their freshly picked up stocks of phutti fearing further decline in prices, ginners claim adding the interesting feature was that there were not many unfixed lots as growers sold them at the ready rates allowing them to further lower their lint prices.
Floor brokers said the idea of a short crop being floated by some quarters appears to have no relevance to the latest arrival figures released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended Nov 15.
According to official figures, the arrivals of phutti totalled 5.173m bales as compared to 4.820m bales during the same corresponding period last year, showing an increase of 7.33 per cent. Out of the total mills have purchased 3.430m bales followed by the private sector exporters.
The biggest rise of 8.83 per cent was recorded in Punjab but it is unclear whether or not the growers have dumped their entire stock of first and in part of the second picking or holding on to sell it much higher rates, dealers said.
However, one thing appears certain that the new crop is expected to be in line with the official projections and could top the estimate by a fair margin after the last picking is done, they added.
But leading brokers did not predict further decline in lint prices below the Rs2,000 per maund level as this level has a relevance to the ruling international prices.
“Prices of lint after having fallen by Rs85 per maund during the last couple of sessions seem to have stabilized above the Rs2,000 per maund level and may not fall below despite higher crop ideas”, they said adding “mill demand is there to sustain them and they are not inclined to sit on the sidelines”.
Official spot rates were further lowered by Rs35 per maund to Rs2,015 but most of the deals in the ready section were done on quality basis.
New York cotton futures came in for selling at the higher level and fell by 0.80 and 0.36 cents per lb at 48.21 and 50.57 cents per lb for both the ruling December and the distant March settlements.
Ready offtake was active as till late in the evening about 35,000 bales changed hands as under:
SINDH TYPE: 200 bales each and 400 bales, Punjmoro, Daultpur and Jam Datar at Rs2,000.
PUNJAB VARIETY: 2,000 bales and 3,000 bales, Rahimyar Khan and Sadiqabad at Rs2,075 to Rs2,100, 1,400 bales, Liaquatpur at Rs2,050 to Rs2,100, 5,000 bales, Nurpur Nauranga at Rs2,075, 1,600,600 and 1,400 bales, Chingoth, Mehmoodabad and Lodhran at Rs2,075, 4,000 bales, Bahawalpur at Rs2,050 to Rs2,075, 3,000 bales, D.G.Khan at Rs2,040 to Rs2,060, 2,000 bales, Rajanpur at Rs2,055 to Rs2,075, 3,000 bales, Alipur at Rs2,050 to Rs2,055, 2,000 bales, Ahmedpur East at Rs2,075, 1,000 bales, Hasilpur at Rs2,075, 1,000 bales, Shujabad at Rs2,060, 2,000 bales, Burewala at Rs2,025 to Rs2,075, 1,000 bales, Mian Channu at Rs2,025, 500 bales, Pirmahal at Rs2,055, 1,400 bales, Muridwala at Rs2,000 to Rs2,050, 1,000 bales, Gojra at Rs2,025 to Rs2,045, 1,000 bales, Mangi Bungalow at Rs2,025 to Rs2,045 and 800 bales, Tandilawali at Rs1,985.
