KARACHI, April 7: Cotton market on Thursday lacked normal trading interest as both buyers and sellers kept to the sidelines apparently awaiting who will set the ball rolling, brokers said. The market seems to be following in the footsteps of New York cotton futures, which are in consolidation phase above the 50-cent per lb mark, they said. But the absence of foreign demand both from Pakistan and China has taken steam out of it as was reflected minor fractional changes on the lower side for the last couple of sessions.
“Local spinners who still need some more supplies to cover their forward foreign sales for the last quarter of the current fiscal may opt for some fresh supplies after New York cotton futures fell below 50 cent per lb”, market sources said.
Before opting for foreign lint spinners would like to hear an official word from the TCP, its floor price and the lots it intends to sell in its maiden tender, they said.
For the time being there is, however, a relative quiet on the ready front. Ginners are said to be seeking higher prices owing to a sharp fall in the unsold stocks, while spinners and mills are not inclined to go beyond their export parity rates, hence the standoff”, they added.
Meanwhile, reports originating from the spinning sector indicate that physical shipments of cotton yarn under forward deals are being judiciously made and indications are that they will be completed before June 30.
There was, therefore, no change in the official sport rates but some of the deals were done on higher rates based on quality premiums.
New York cotton futures on the other hand suffered a fresh fractional fall of 0.17 and 0.16 cents per lb at 51.88 and 53.59 cents for both the ruling May and the forward July settlements.
Ready business was light totalling about 4,000 bales. The following being some of the notable deals: 1,200 bales, upper Sindh at Rs2,200 to Rs2,325, 400 bales, Rahimyar Khan at Rs2,200 and 600 bales, Burewala at Rs2,350.
