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KARACHI, Dec 13: Trading activity on the cotton market on Friday maintained at the higher level as spinners were not inclined to take even a technical breather in the backdrop of quality war.
Prices remained stable around the previous levels as bulk of the business was finalized on the quality of lots in trade. As a result, there was a wide difference in the selling prices of various grades based on micronaire.
Fine lots were again traded around Rs2,125 per maund without 15 per cent sales tax, while inferior ones were sold at Rs1,885 on the lower side and Rs1,985 on the higher side.
The interesting feature was that both ginners and the spinners appear to be a bit satisfied over the current stance, which unlike the previous seasons is stable sans the element of speculative trading.
Floor brokers said the prevailing near-stability in the market has enabled the textile sector to plan for long-term basis on the export front as the perception of an adequate supplies till the end of the season has given the needed push to their competitive edge on the world markets.
The general thinking is that the value-added textile exports could set up a new record on the export front during the current season as the industry has, to its credit, both comfortable supplies of lint and competitive prices, they added.
The current heavy and persistent mill buying is reflective of the fact that the going on the textile front is a bit easy. Unlike previous seasons, all the sectors associated with the cotton trade are said to be satisfied despite some weak voices from the interior calling for the re-entry of the Trading Corporation of Pakistan to support the growers.
On the export front, private sector exporters have registered export contracts for 2,100 bales sold to Indonesia and Bangladesh with the Export Promotion Bureau on Dec 4 and 12.
Official spot rates, therefore, consolidated the previous gains, while New York cotton futures suffered fresh fall of 1.09 cents and 1 cent at 49.22 and 53.20 cents per lb for both the ruling March and the distant May settlements on speculative selling.
Ready offtake was active and was placed around 20,000 bales as under:
SINDH VARIETY: 800 bales, Shahdadpur at Rs2,000, 500 bales, Sanghar at Rs1,970, 200 bales, each at Rs1,910 and Rs1,850 and 400 bales, Kumb at Rs2,090.
PUNJAB TYPE: 2,000 bales, Sadiqabad at Rs2,125, 400 bales, Kheror Pacca Rs2,050, 1,000 bales, Haroonabad at Rs2,075, 2,000 bales, Ahmedpur East at Rs2,115, 1,000 bales, each Rajanpur and Choti at Rs2,125, 2,600 bales, Bahawalpur at Rs2,075 to Rs2,140, 400 bales, Sahiwal at Rs1,985, 200 bales, Bahawalnagar at Rs2,050, 1,000 bales, Muridwala at Rs1,925 to Rs1,975, 1,000 bales, Vehari at Rs2,075 to Rs2,100, 1,500 bales, D.G.Khan at Rs2,100 to Rs2,125, and 200 bales, Burewala at Rs2,075.
