KARACHI, Sept 23: Trading on the cotton market on Friday remained fairly active for the fourth sessions in a row and ginners were not inclined to hold on to their unsold positions in an uncertain near-term price outlook.
The market seems to be following the trend in the New York cotton futures, which are stable around 50 cents per lb but unlike the previous season, spinners and mills are relying on the local supplies in the backdrop of higher crop projections, brokers said.
Moreover, the prevailing rates for both the central Sindh and Punjab are competitive as far as the export parity level of the textile sector is concerned, they said.
Although the TCP has reactivated its procurement centres in Sindh, the growers, weaker links among them, are reportedly dumping phutti in some cases even below the official support price of Rs975 per maund.
The TCP has announced to purchase lint at Rs2,269 per maund from the Sindh ginners but so far no ginner opted for the TCP outlets and prefers to sell in the ready market direct to the spinners at the prevailing rates.
Market sources said about 10,000 to 15,000 bales of new crop are changing hands daily and the daily mill intake could soar on average to 50,000 and 60,000 bales, after the picking operations of phutti resume in the upper Sindh and southern Punjab cotton belts, two major producers of fine quality lint.
Meanwhile, official sources continue to entertain higher crop ideas as there are no serious reports about the pest attack in any of the major crop areas. However, some damage was done to the crop in the DG Khan cotton belt owing to floods and rain in some other areas.
Official spot rates were held unchanged at the previous levels and so did New York cotton futures for the ruling October contract at 50 cents per lb. The forward December settlement was marked up fractionally by 0.8 points at 51.97 cents, showing a future price flare-up because of reported damage to the standing crop by recent sea storms.
Ready offtake was active as about 8,000 bales changed hands as under:
SINDH VARIETY: 1,400 bales, Mirpurkhas at Rs2,100 to Rs2,125, 800 bales, Sanghar at Rs2,125 to Rs2,150 , 800 bales, Tando Muhammad at Rs2,150 to Rs2,155, 600 bales, Shahdadpur, 4,00 bales each Nawabshah, Shahpur Chakkar, Daur, Nayaabad, at Rs2,150, 400 bales, Jhole at Rs2,125 to Rs2,150 and 200 bales, Bucheri also at Rs2,150.
PUNJAB VARIETY: 800 bales, Mian Channu at Rs2,155 to Rs2,185, 600 bales, Bahawalpur at Rs2,175 to Rs2,215, 200 bales, Mamon Kanjan at Rs2,150, 500 bales, Burewala at Rs2,190 to Rs2,200, 200 bales, Pir Mahal at Rs2,170, 200 bales, Ghazi Abad at Rs2,175, 400 bales, Jahania at Rs2,190 to Rs2,200 and 200 bales, Chichawatni at Rs2,150.
