KARACHI, Sept 3: Prices on cotton market on Saturday maintained downward drift as ginners again indulged in panic-selling in the backdrop of higher phutti arrivals, although spinners remained selective buyers.
Brokers said bulk of the selling pressure was noted in the Sindh variety as some of the deals were finalized around Rs2,025 per maund. The prevailing panic caused by steady arrivals of phutti could push prices further down in the coming sessions, they added.
Lint prices in the lower Sindh type were marked down by Rs300 per maund from the seasonal highs of Rs2,325 to Rs2,025 on Saturday but spinners and mills played safe followed by predictions of further fall in prices, brokers said.
“The new crop may not be victim of abnormal increase in arrivals of phutti into the ginneries, which essentially may not lead to another bumper crop”, says a leading cotton specialist “it could be grower preference to get out of the market as earlier as possible”.
He said that as ginners too were not inclined to take risk expecting an increase in prices, they passed on the buck to the spinners, although some of them were still undecided how to react to the developing situation on the cotton front.
In a falling market neither growers nor ginners are in a mood to hold on to their unsold positions and are selling at lower profit margin, he added.
“It is too early to say something about the size of the crop owing to reports of pest attack in some of the Punjab cotton belt”, ginners said “crop figure will be known by the first week of December after the start of picking operations in major cotton growing areas including upper Sindh and southern Punjab”.
Official spot rates were lowered by Rs25 at Rs2,175 per maund, while New York cotton prices showed mixed trend. The ruling October delivery rose by 0.18 cents per lb at 48.47 cents and forward December showed a fractional decline of 0.09 cents at 49.85 cents per lb respectively.
Ready off-take was active totalling about 7,000 bales, the following being some of the notable deals.
SINDH TYPE: 1,000 bales, Mirpurkhas at Rs2,025 to Rs2,075, 1,400 bales, Tando Adam at Rs2,040 to Rs2,050, 1,000 bales, Shahdadpur at Rs2,150 and 200 bales, Kot Ghulam Muhammad at Rs2,100.
PUNJAB VARIETY: 200 bales, each Chichawatni and Burewala at Rs2,275, 200 bales, Tandialwali at Rs2,225.
