KARACHI, April 21: Quietly steady trading conditions were witnessed on the cotton market on Thursday as ginners raised their asking prices in line with the New York cotton futures. “New York cotton futures are heading to hit their nearby target of 60 cents per lb not in the very distant future”, an optimistic ginner who still hold a modest stock of fine lots predicts “that could well mean a local rate of about Rs2,500 per maund.”
During the current week, the ruling May and forward July contracts have rose to 55 cents plus per lb level, reflecting pressure on world supplies and some speculative forces predict the prices could touch the high mark of 60 cents per lb in line with the rising consumer demand.
Most of the ginners who still hold an unsold stock of about 0.300m bales are now entertaining higher price ideas and are reluctant to sell quality lots at the offered prices.
But the future price outlook for the local stuff is expected to be set by the bidding rate both by the local and foreign buyers for the TCP’s 60,000 bales tender for which a tender has been floated for April 23, market sources said.
However, irrespective of TCP tender prices and the highest bids at which it accepts the offer, one thing is clear that local ginners are not worried over the auction as they have a manageable unsold stock, which could be disposed of just in one go, they said.
Floor brokers said there were reports of inter-mill dealings as leading textile groups who had built up long positions earlier in the season around Rs2,300 were selling their stock at Rs2,300 plus to needy spinners on forward basis.
Unconfirmed reports said some of the spinners holding short positions were willing to pay Rs2,350 per maund on two-month deferred payments, they said.
Meanwhile, reports coming from the lower Sindh cotton belt where the crop is sown earlier, the growth rate of the tender plants is satisfactory and there is no shortage of irrigation water or reports of pest attack.
Official spot rates were firmly held unchanged at the previous level of Rs2,225, while New York cotton futures rose by 1.36 cents per lb at 55.54 cents for the ruling May contract, while the distant July showed a fractional fall of 0.02 cents at 54.85 cents per lb.
There was a relative quiet on the ready front, although some brokers said about 3,000 bales from various stations changed hands. But the KCA reported one deal of 200 bales, Nawabshah at Rs2,150.
