KARACHI, July 8: Easier conditions were again witnessed on the cotton market on Thursday as prices fell further in the absence of demand even at the lower levels.
Prices kept sliding by Rs25 per maund each apparently in an effort to attract buyers but the response from them remains negative.
Cotton analysts said the ginner strategy to delay the resumption of new crop operations, allowing breathing space to those who still hold sufficient unsold stocks, seemed to have failed as spinners were not in an obliging mood.
Even at the lower levels, no one among them tried to lift all the lots offered by the ginners at a competitive price in line with world rates, they said. The spinners appear to be in full command of the cotton trading and enter and leave the market at will, leaving the ginners guessing how to react to the developing scenario, dealers said.
Leading among them, who had already covered their annual consumption needs up to Aug 31 through imports, are eying the arrival of new crop, although after having made expensive imports they too are not that happy position.
In the absence of details of the unsold stocks lying with the ginners, it is pretty difficult to assess whether or not the ginners are in a "real crisis and are victims of falling mill demand," they said.
Reports coming from the southern Punjab cotton belt where bulk of the unsold stock is being held indicate that the spinners from the central Punjab are making direct purchases from the ginners, they said.
Meanwhile, reports of fresh rain in some of the central Sindh cotton belt is said to be helpful to the growth of tender plants, although it allows breeding of pests during the post-rain period.
In the lower Sindh cotton belt arrivals of the new crop are claimed to be fairly steady but the ginners may not resume new year operations before the deadline (Aug 15) set for them by its parent organization.
Official spot rates were further lowered by Rs25, but there was no reports about the revival of mill demand. Ready off take was light as till late in the evening about 1,000 bales of low-mic from the Sindh cotton belt changed hands.
The following are Thursday's Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32" micronair value between 3.8 to 4.9 NCL.
