KARACHI, Oct 3: Cotton prices on Monday rose modestly further higher as ginners were not inclined to take even a technical breather apparently having some negative information about the crop size.
Most of the leading agencies including spinners have their own private crop survey network, which monitor the developments on the latest crop front and mills and ginners base their buying strategy on their findings rather than the official figures, analysts said.
“There may be some negative reports about the damage to the standing crop in last month floods in D.G.Khan and some other areas and the current mill buying appears to be based on their private reports”, they said.
Although prices of lint have, during the last couple of sessions, risen by Rs50 to Rs100 per maund, spinners and mills remained active buyers, they added.
Incidentally, bulk of the mill buying including some big deals remained confined to the central Sindh varieties and some fine lots from the Punjab belt were also traded as higher at Rs2,260 per maund.
Indications are that prices are heading towards the Rs2,300 per maund level well before the re-entry of the TCP as a second buyer at Rs2,269 per maund and what after that is not clear, says a leading broker.
The recent rise in the asking prices of phutti by the growers is well reflected in persistent increase in lint prices and buying by the mills has reinforced the idea that further rise in prices is not ruled out if growers continue to hold on their stocks, market sources said.
Official spot rates were marked up by Rs15 per maund at Rs2,165 per maund in line with those at which physical business was being transacted.
About 10,000 bales changed hands in the ready section, following being some of the notable deals:
SINDH VARIETY: 3,600 bales, Shahdadpur at Rs2,225, 1,200 bales, Mirpurkhas at Rs2,190 to Rs2,200, 600 bales, Jhole, 400 bales, 200 bales, Shahpur Chakkar and Sanghar at Rs2,225, 600 bales, Nawabshah, New Saeedabad at Rs2,215, 200 bales, Sarari at Rs2,220, 600 bales, Tando Adam at Rs2,210 and 400 bales, at Rs2,180.
PUNJAB TYPE: 400 bales each from Vehari, Shadan Lund, D.G.Khan, Tibba Sultan, Rajanpur, Burewala and 200 bales, Ghara More, at Rs2,225, 800 bales, Hasilpur at Rs2,230 to Rs2,250, 600 bales, Haroonabad at Rs2,225 to Rs2,260, 400 bales, Chistian at Rs2,250 and 600 bales, Lodharan at Rs2,210.
