KARACHI, Aug 20: Cotton market on Friday modestly eased from the previous higher levels as some of the ginners indulged in hasty selling to clear the backlog of unsold stocks.
In physical trading, prices, therefore, eased by Rs25 to Rs50 per maund but some of the leading ginners held on to their positions and decided to keep out of the market at least for the near-term, brokers said.
Unlike the previous, ready business relatively slow despite the fact that spinners and mills were active buyers at these rates, they said. However, most of the deals finalized in the ready section were done between Rs2,250 and Rs2,275 as spinners were not inclined to bid at Rs2,300 as some of them did a day earlier, they said.
Floor brokers said the future price outlook appears to be a bit bullish in the backdrop of sustained run-up by the New York cotton futures and its bullish impact elsewhere.
"Lint prices could rise from the current levels as the price manipulation leverage is still with the growers", they said adding "any time they could hold stock of phutti, which in turn will have bullish impact on the lint prices".
The cotton situation is not clear at this early stage of the new season and real price trend will be known after picking operations in the southern and upper Sindh cotton belts resume, they said.
In the meanwhile, tactical manoeuvring by both the ginners and spinners will continue to be hallmark of daily trading. Prices could show erratic movements in between. Official spot rates were further upped by Rs50 in line with Thursday's ready prices at which most of the deals were done but will be revised downward on Saturday.
New York cotton futures maintained their upward drive for the fourth consecutive session. On Thursday, both the ruling October and the distant December settlements were quoted further higher by 0.48 and 0.31 cents at 47.83 and 48.83 cents per lb respectively.
Ready off-take was active as till late in the evening about 5,000 bales changed hands as under: 1,100 bales, Sultanabad at Rs2,250 to Rs2,275, 400 bales, Mirpurkhas at Rs2,275 to Rs2,300, 800 bales, each Shahdadpur and Tando Adam at Rs2,275 and 400 bales, Jhole at Rs2,250.
The following are Friday's new crop 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.
