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KARACHI, Oct 18: Cotton prices on Tuesday rose by another Rs35 per maund as speculation about the size of the crop again dominated the trading amid an actively traded session.
Later in the evening prices eased by Rs25 to Rs35 per maund after the Pakistan Cotton Ginners Association (PCGA) released arrival figures for the fortnight ended Oct 15, 2005 which were on the higher side and depressed the market temporarily.
According to the PCGA the arrivals of phutti rose to 2.542m bales, almost double the previous fortnight’s figure but lower by about a million bales if compared with the last year’s total.
Out of the total, mills have purchased 1.614m bales and private sector exporters 30,000 bales, leaving an unsold stock of 0.897m bales with the ginners.
Bulk of the business in the Sindh and Punjab was finalized around Rs2,450 per maund despite varietal difference as spinners apparently preferred the former, although in normal trading the latter is sold at a premium of Rs50 per maund, dealers said.
The rate pattern indicates that the lint from the central Punjab ginneries has lost premium advantage owing perhaps to late rain. But lint from Rahimyar Khan and Bahawalpur areas is considered of a fine type and is generally sold at a higher price, they said.
“An equal average rates of the both is a new phenomenon”, says a leading broker, which reflects some damage to the quality of the fibre.
But ginners say there is no damage to the quality, the equal average price of the both varieties indicates spinners drive to corner the floating stock and the ginners’ effort to get out of the backlog at the offered rates.
“Earlier, spinners and mills were out to lift all the available lots before the arrival figures were released by the PCGA”, they said.
But on the other hand New York cotton futures remained under pressure on speculative selling, the local market sentiment was not influenced bearishly as fears of a short crop haunted the spinners and mills.
The December and the forward March contracts were quoted lower by 0.93 and 0.82 cents at 56.00 and 57.57 cents per lb respectively.
Ready off-take was brisk totalling about 15,000 bales mostly from the Punjab ginneries as under.
SINDH TYPE: 400 bales, Sanghar at Rs2,345 to Rs2,375, 400 bales, each Bucheri and Shahpur Chakkar at Rs2,450.
PUNJAB VARIETY: 1,200 bales, Vehari, 2,000 bales, Rajanpur, 400 bales, Chini Goth, 200 bales, Jalpur, 2,000 bales, Bahawalpur, 400 bales, Liquatpur, 400 bales, Rahimyar Khan, 600 bales, Noorpur Nauranga, 600 bales, Shujabad, 200 bales, Haroonabad, 400 bales, Jahania, 600 bales, Samandri and 400 bales, Muhammadpur at Rs2,450, 800 bales, Lodhran and 400 bales, Hasilpur at Rs2,425 to Rs2,450, 800 bales, Chichawatni at Rs2,435 to Rs2,450 and 400 bales, Mongi Bunglow at Rs2,440.
