KARACHI, April 4: Cotton prices on Monday rose modestly higher amid fears that the below market expectations of arrivals of phutti into ginneries could fuel the current bullish trend. According to official arrival figures released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended March 31, only 28,000 bales were added to the previous total at 14.340m bales, as compared to 14.312m bales a fortnight earlier.
The latest arrival figures may be close to the final as addition of a couple of thousands of more bales for the fortnight ending April 15 may not change the statistical position, ginners said.
What seems to have sent bearish signal in the textile sector was fears that pressure on supplies could push prices further higher in the coming weeks, brokers said.
The unsold stock of lint with the ginners is too small to meet the rising mill demand and perception of short supply always pushes prices higher, they said. However, some analysts said the TCP could again play a role of market stabilizer after advancing its schedule of local selling a bit earlier to forestall any speculative rise based on short supply.
The market talk of early arrival of the imported stuff against forward deals, reportedly signed by some of the leading spinners earlier this year, is not verified from the spinners and until a maiden consignment arrives speculation about the foreign purchases may remain an elusive perception, some brokers said.
Meanwhile, reports coming from upper Sindh and southern Punjab cotton belts indicate that the ginners holding stray unsold stock of lint are reluctant sellers at the current levels, anticipating a further increase in prices.
Official spot rates were increased by Rs25 per maund at Rs2,275, but fine lots were sold above them depending on quality.
Ready business was modest totalling 7,000 bales, the following being some of the notable deals: 4,000 bales, upper Sindh at Rs2,300 to Rs2,325; 1,200 bales, Bahawalpur at Rs2,350; and 218 bales, low-mic, Ahmedpur East at Rs2,200.
