KARACHI, Sept 13: Fairly brisk trading was witnessed on the cotton market on Tuesday as spinners lifted all the lots offered by the ginners around the current levels. What seems to have accelerated the mill buying was reports that the Trading Corporation of Pakisan (TCP) has been directed about half million bales from the new crop to ensure a fair prices for both the growers and the spinners, dealers said.
Although the initial procurement target was on the lower side, which could be increased progressively to the last year’s level of 1.6m bales depending on the size of the crop and market prices, it has warned spinners to cover their positions as a first buyer before its entry in the cotton trade.
The TCP has already about 0.4m bales in its godowns from the previous crop out of which it has invited tender for 50,000 bales, dealers said.
Most of the deals including some big ones in the Sindh type were done between Rs2,130 to Rs2,175, Punjab variety was sold at Rs2,225 on the lower side and Rs2,290 on the higher side respectively.
Floor brokers said the future price outlook would depend on the size of the crop amid conflicting reports about it, private surveys conducted by some of the agencies show that crop is good and may be in line with the official projection.
“The recent rain, notably in the lower Sindh Cotton belt where the crop is in the picking stage may damage the quality of fibre, but in other parts of the cotton belt where it is at flowering stage, the rain is beneficial for its growth,” they said.
Official spot rates were, therefore, firmly held at the last close, although in the ready section some of the deals were done above them on varietals factor.
New York cotton futures on the other hand came in for renewed selling and fell by 0.45 and 0.75 cents per lb at 49.60 and 51.20 for both the ruling October and the forward December settlements respectively.
Mill ready offtake was on the higher as about 10,000 bales changed hands as under;
SINDH VARIETY: 1,400 bales, Sanghar at Rs2,145 to Rs2,150, 1,400 bales, Tando Adam at Rs2,150 to Rs2,175, 1,000 bales, Shahdadpur at Rs2,165 to Rs2,175, 400 bales, Shahpur Chakkar at Rs2,170 to Rs2,175, 200 bales, Nawabshah and Sarari at Rs2,175, 200 bales, Nayabad at Rs2,140, 200 bales, Tando Allahyar at Rs2,130, 200 bales Mirpurkhas at Rs2,150.
PUNJAB TYPE: 400 bales, Mangi Bungalow at Rs2,250 to Rs2,275, 100 bales, 400 bales, Chichawatni, 200 bales, Ghaziabad, and 200 bales, Arifwala at Rs2275, 800 bales, Sahiwal at Rs2,225 to Rs2,290, 200 bales, Gojra at Rs2,250, 200 bales, Samundri at Rs2,235, 200 bales, Mamon Kanjan at Rs2,225, 200 bales, Haroonabad at Rs2,265, 200 bales, each Vehari, Garma Raja and Bahawalnagar at Rs2,250.
