KARACHI, April 27: Cotton prices on Wednesday ruled firm as ginners appear to be in no hurry to sell their stocks but firmly held on to them amid predictions of heating up of the market in the backdrop of some positive external developments. But some local brokers claimed that leading spinner groups were in the market and were lifting substantial lots daily without reporting the deals to the Karachi Cotton Association (KCA).
“Both fully know their statistical positions and try to oblige each other without outwitting ginners, although they have an edge over the spinners owing to falling unsold stocks”, they said.
According to unconfirmed reports the unsold stock of lint with the ginners has fallen to around 0.2m bales, which is not a financial drain on any of the holders.
Ginners said some of the spinners were after each fine lot and were offering much higher prices slightly above the prevailing world rates as they were not inclined to go for imports in a rising world market.
The recent fire in the TCP godown in Rahimyar Khan, which reportedly destroyed a few thousand bales of lint, was also an aiding positive factor for the ginners despite the fact that there was no official figure from the TCP about the loss, they said.
“As the world supply and demand situation of lint is unfolding, the next couple of weeks could be very crucial for the future price outlook followed by reports of increasing demand from the end-product users”, they said and added that “those who have the capacity to hold on before the new crop arrives, could get still better price for their stuff”.
Meanwhile, there was no report from the TCP sources about further sale of lint to both local and foreign buyers after some of them had revised upward their bid prices to match those of the TCP’s benchmark one, market sources said.
New York cotton futures posted fresh gains of 0.25 and 0.46 cents at 58.50 and 57.47 cents per lb for both the ruling May and the distant July settlements respectively.
But on the other hand there was a relative quiet on the ready market as some of the deals in the southern Punjab cotton belt are being finalized direct between the mills and ginners.
In the ready section a lot of 400 bales of inferior stuff, from Nawabshah changed hands at Rs2,190 per maund.
