KARACHI, May 30: Trading on the cotton market on Monday resumed on a firm note as ginners raised their asking prices owing to sudden pick up in mill demand. Unlike the previous sessions about 2,000 bales including some odd lots changed hands, with fine lots from the Punjab cotton belt fetching the highest price of Rs2,350 per maund.
“Ginner perceptions about higher prices at the fag-end of the season seem to be in line with the supply and demand factors”, brokers said “spinners and mills appear to be after each quality lot irrespective of the asking prices”.
Market sources said the demand for Pakistani textiles in the US had picked up significantly followed by reports of ban on some categories from China and mills were out to cover their forward sales of finished goods.
They said although the TCP was in the market and holding weekly auctions of lint procured by it to support the market earlier in the season, mills had launched their mopping operations to grab the floating stock here and there before the arrival of new crop.
According to them spinners and mills were not inclined to take the risk of a short supply at the fag-end of the season or miss their export target and were trying to build up a strong stock position after having purchased all the unsold stocks both from the ginners and the TCP.
As a result, the market was heating up each day as some of the ginners, notably from the Punjab cotton belt who held modest unsold stocks were offering them above Rs2,300 per maund.
Inferior types both from the central Sindh and the central Punjab cotton belts were also being sold around Rs2,200 per maund as spinners and mills were not inclined to keep to the sidelines.
Meanwhile, reports coming from the central Sindh cotton belt indicate that Sunday’s rain in the major cotton growing areas is beneficial for standing cotton crop as it will prove a major aiding factor in its growth during the coming weeks.
There was, therefore, no change in the official spot rates but some of the deals in the ready section were done well above them. The following are some of the deals went through on Monday evening: 200 bales, 50 and 150 bales, Karachi delivery at Rs2,225 and Rs2,300, 462 bales, Vehari at Rs2,200, 100 bales, at Rs2,150 and 147 bales, at Rs2,350.
