KARACHI, Nov 30: Cotton price on Tuesday remained under pressure as panicky ginners continued to liquidate unsold positions in a falling market despite the strong presence of both spinners and the TCP.
"There is a virtual panic among the ginners as no one among them is inclined to hold on long positions for a better future market", brokers said adding "each one of them tries to sell its newly ginned stocks at the prevailing prices".
The prevailing confusion among the ginners appears to be psychological rather than real as predictions of a record crop seem to have sent shock waves among them, they said adding "the crop is good but is still far below the annual consumption needs of the textile sector".
According to rough estimate, textile sector may need about 13m bales to see the current season through, while at best the total crop may not hit the high mark of 11m bales, they said "adding 30 per cent of staple fibre to the total even then the total will lower than that of actual mill demand". There are no valid reasons about the prevailing confusion among the ginners.
TCP tally has already hit the high mark of 1.3m bales and its aggressive buying continues though its operations failed to forestall persistent decline in prices, they said.
Official spot rates were further lowered by Rs50 per maund at Rs1,825, although in physical trading most of the lots sold on quality basis, they said. Sindh variety was available at Rs1,600 to Rs1,850, while its Punjab counterpart was traded between Rs1,650 to Rs1,875 depending on the quality of lint in trade.
Meanwhile, there was no let up in mill buying, although some of the leading spinners awaited the phutti arrival figures for the fortnight ended Nov 30, due during the next couple of sessions.
Ready off-take was on the higher side as spinners and mills continued to build long positions at the current levels. About 40,000 bales changed hands the following being some of the notable deals.
SINDH VARIETY: 600 bales, Sanghar and 800 bales, Mirpukhas at Rs1,650 to Rs1,700, 400 bales, Mehrabpur at Rs1,810 and 400 bales, K-68 (Sawgin) Gothki at Rs1,900.
PUNJAB TYPE: 2,000 bales, each Fazalpur, Muhammadpur Dewan, Rajanpur, 1,000 bales, Ahmedpur East, 800 bales, Nurpur at Rs1,850, 400 bales, Khanpur at Rs1,865, 2,000 bales, Rahimyar Khan, at Rs1,875, 1,000 bales, Lodhran at Rs1,875, 2,000 bales, Sadiqabad at Rs1,850 to RS1,875, 1,000 bales, Alipur at Rs1,885, 1,000 bales, Zahirpir at Rs1,875, 1,500 bales, Burewala at Rs1,825 to Rs1,875, 400 bales, Shujabad at Rs1,800, 400 bales, Uch Sharif at Rs1,875 and 400 bales, Kabirwala at Rs1,865.
The following are Tuesday'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.
