KARACHI, July 26: Trading activity on the cotton market remained slow as spinners lifted modest quantities of the lint, anticipating further fall in prices after steady increase in new crop arrivals.
But in physical trading, some of the deals are being finalized between Rs2,450 and Rs2,500 per maund that appears to be unofficial parity rates agreed between the spinners and ginners.
A new crop deal of 100 bales from a Mirpurkhas ginnery was also finalized at this rate, while new crop lots from the central Punjab cotton belt ginned mostly from the Sindh phutti is being quoted at around Rs2,550, brokers said.
They said selling rates below Rs2,500 per maund for the current crop might not be economical for the ginners, but some of them seemed to have decided to clear the backlog well in time before the new crop arrivals gathered momentum.
"The spinners seem to have won the battle of wits being at its peak for the last couple of weeks as the ginners were not inclined to oblige at the spinners' asking prices," market sources said, adding "but continued absence of the spinners from the market and consequent stand-off unnerved some of the ginners and they lowered their asking prices."
Although some of the ginners still hold an unsold stocks of 0.3m bales, but a good beginning has been made to clear the slate amid hopes that losses could be made during the new crop, they said.
According to reports reaching here from the major growing areas where the new crop is said to be in flowering stage, there were so far no reports of pest attack and the condition of the crop was satisfactory.
In some of the areas spraying has started and in some other areas this will start by the first week of the next month, brokers said. Official spot rates were, however, further lowered by Rs25 per maund depending on the quality of lint. Ready offtake was light totalling about 3,000 bales, the following being some of the deals that went through late on Monday evening:
NEW CROP: 100 bales, Mirpurkhas at Rs2,450.
CURRENT CROP: 1,500 bales, Jehania at Rs2,450; 200 bales, MNH-Sawgin at Rs2,550; 300 bales, Khanpur at Rs2,500; and a fine lots of 200 bales, Rahimyar Khan at Rs2,600.
The following are Monday'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.
