KARACHI, March 18: Cotton market on Friday stayed firm as lower than market expectations arrivals of phutti during the fortnight ended March 15, could push lint prices further higher during the coming weeks. According to official figures released by the Pakistan Cotton Ginners Association (PCGA) total arrivals of phutti in the ginneries were only 56,476 bales, which could trigger panic mill buying in the coming sessions, brokers said. The total arrivals, which are said to be close to the final figures at 14.313m bales as compared to 14.255m bales during the last fortnight reflects that earlier projected total of 14.5m bales may not be achieved, they said. What is more alarming is a steep fall in the unsold stocks lying with the ginners at 0.710m bales and with a little chance of further significant addition, the supplies may remain tight.
Spinners said as the current figures are close to the final, the Trading Corporation of Pakistan should announce its selling policy so that mills and spinners instead of combing the foreign markets may buy the local stuff.
According to TCP sources their total purchases were 2.5m bales, but the figures released by the PCGA put its total at 1.615m bales, the balance may still have to reach its godowns after payments.
But some cotton analysts said the Thursday’s limit-decline in New York cotton futures have raised hopes that foreign lint may be cheaper during the next couple of weeks after the withdrawal of China from the international market.
China was claimed to be on a big shopping list as it needs about 14.5m bales of lint to feed on its expanding textile industry during the current financial year.
Official spot rates were, therefore, again held unchanged but on the other hand New York cotton futures fell by 2.45 and 2.72 cents per lb at 51,33 and 52.50 cents for both the ruling May and distant July settlements respectively on panic-selling.
Ready off-take was light totalling 3,000 bales as under: 1,000 bales each Burewala and Bahawalpur at Rs2,350 and 1,000 bales, Nurpur Nauranga at Rs2,400.
