KARACHI, Aug 8: Trading in the new crop from lower Sindh ginneries is gathering momentum as spinners are willing buyers at around Rs2,325 or slightly above depending on the quality of lint. Floor brokers said that the arrivals of new phutti crop into the ginneries were steadily rising and indications are that some more would resume operations in the lower Sindh cotton belt.
The steady arrivals reflect that picking operations of phutti are in full swing because of warm weather and the crop is expected to be normal as there were no reports of pest attack even at the flowering stage.
But the price look is stable around the current levels and may hold on to these levels for the near-term in the absence of strong mill demand, they said.
“Both the spinners and mills have covered their forward positions after having purchased about 0.9m bales from the TCP during its recent auction and 12m bales from the ginners and may not be in a hurry to add more to their inventories,” market sources said.
However, those spinners and mills who did not participate in the TCP auctions and private sector exporters may remain active buyers as they still need lint to cover their forward positions.
Up to July 31, 2005, the private sector exporters have registered 0.766m bales against their forward export deals with the Export Promotion Bureau against which they have physically shipped 0.493 bales up to June 30, 2005.
Floor brokers said as unsold stocks of the old crop had been exhausted they would opt for the new crop to meet the shipment deadlines, which in turn could give a slight upward push to the prevailing prices.
Official spot rates were firmly held at the last levels in line with an identical feedback from the ready section. Ready offtake in the new crop was 600 bales as under: 200 bales, Mirpurkhas at Rs2,325; and 400 bales, Sanghar at Rs2,350 per maund.
