KARACHI, Oct 13: Cotton market on Thursday remained depressed as spot rates were further lowered by Rs100 per maund on active renewed selling by the ginners after increased arrivals of phutti.
Prices have eased by Rs175 per maund during the last two sessions after having fallen as steadily as they did rise on rumours of a short crop in the Punjab cotton belt, floor brokers said.
During the last two sessions prices have declined in the same way as did they rise earlier in the week as an accelerated pace of arrivals of phutti signalled that the crop may not be that short as widely speculated, they said.
However, the developing situation on the cotton front reflects the market is in the tight grip of growers aided in part by some speculative forces and could keep spinners at their toes all the time, never allowing them to refix their export priorities, they added.
“There is no-win situation as both spinners and growers are in the fighting arena and the last four sessions either-way price movements reflect that the market may remain unsettled if the current war of wits continues”, market sources said.
Arrival figures of phutti for the fortnight ending Oct 15 could restore sanity on both sides of the divide but one thing is clear speculative forces are sure not to be eliminated from the price war, they added.
Phutti rates also declined from Rs1,100 to Rs1,000 or slightly below after growers flooded the ginneries with held back stocks and fixed them at the falling rates.
In physical trading both the Sindh and the Punjab types were also marked down at par with each other despite the fact that there was quality difference in them, the former being at an advantage, they said.
But on the other hand New York cotton futures recovered most of the overnight losses and were quoted higher by 0.73 and 0.79 cents per lb higher at 55.90 and 57.50 cents per lb for the ruling December the forward March settlements.
Ready off-take was active at the falling rates and totalled about 10,000 bales as under:
SINDH VARIETY: 2,000 bales, 1,000 bales, Shahdadpur, 400 bales, Shahpur Chakkar at Rs2,350, and 1,000 bales, Sanghar at Rs2,300 to Rs2,330.
PUNJAB TYPE: 2,000 bales, Rajanpur, at Rs2,350 to Rs2,400, 600 bales, Burewala at Rs2,375 to Rs2,395, 200 bales, Hasilpur at Rs2,375, 1,000 bales, Gojra, 400 bales, Liaquatpur, 200 bales, Sahiwal, 400 bales, 400 bales, Bahawalpur, 200 bales, D.G. Khan, 200, Kot Addu, 400 bales, Zahirpir, 200 bales, Jalalpur, 400 bales, Khanewal, 400 Ahmedpur East, 600 bales, Alipur and 200 bales, Lodhran at Rs2,350, 200 bales, each Chichawatni and Tandialwali at Rs2,300, 400 bales, Patoki at Rs2,325 and 200 bales, Mian Channu at Rs2,335 and 200 bales, Shujaabad at Rs2,400.
