KARACHI, Sept 14: Cotton market on Wednesday showed firm trend amid active trading for the second session in a row as spinners continued to cover their forward positions against foreign sales of textiles.
Indications are that spinners and mills are inclined to grab the floating stock of lint below Rs2,200 per maund from the Sindh ginners and offer below Rs2,275 for the central Punjab type.
However, there was no immediate negative fall-out of the steep decline in New York futures on the local prices as spinners mostly operated on their export parity levels rather than the bearish world price outlook.
“The fall of New York cotton futures below 50 cent per lb levels makes imports competitive,” spinners said “but as they have sufficient stocks of lint after having purchased a million bales from the TCP, they need not to go for foreign lint at this early stage of the new season.”
The general market perception is that the prevailing local rates of lint are attractive enough for both the spinners and the ancillary industry as was reflected by daily heavy ready off-take.
Floor brokers said private sector exporters are keeping off the market for the near-term owing to erratic price movements being turned in by New York cotton future and reluctance of the foreign buyers.
The details of bid prices for the Wednesday’s (Sept 14) TCP auction for 50,000 bales are not immediately available, which will certainly impact the local prices, they said.
New York cotton futures closed at 48.37 and 49.80 cents per lb for both the ruling October and the forward December settlements, sharply well over one-cent per lb.
Local official spot rates on the other hand were firmly held at the last level in line with those being quoted in physical trading.
Ready off-take was active totalling about 8,000 bales as under:
SINDH VARIETY: 2,000 bales, Shahdadpur and 600 bales of Shahpur Chakkar at Rs2,175 to Rs2,185, 1,200 bales, Tando Adam at Rs2,165 to Rs2,170, 200 bales, each Mirpurkhas and Kot Ghulam Muhammad at Rs2,150, 200 bales each Sakrand and Nawabshah at Rs2,175, and 400 bales, Jhole also at this rate.
PUNJAB TYPE: 300 bales, Mianwali at Rs2,250 to Rs2,275, 400 bales, PakPattan at Rs2,230 to Rs2,250, 200 bales, Mangi Bangalow at Rs2,275, 400 bales, 200 bales, 200 bales, Bhawana, Jhang and 200 bales, Pir Mahal at Rs2,250, 200 bales, Chichawatni at Rs2,245, and,400 bales, Mamon Kanjan at Rs2,225 and 400 bales, Samundri at Rs2,235.
