KARACHI, Nov 10: Trading on the cotton market resumed on a firm note on Thursday after the Wednesday’s closure on account of ‘Iqbal Day’ as ginners remained in an upbeat mood followed by reports of lower arrivals of crop.
Bulk of the ready off-take was again confined to the Punjab variety as spinners and mills tried to grab the floating stock of fine type to produce higher counts of cotton yarn for the export markets, dealers said.
Most of the deals were finalized between Rs2,375 and Rs2,400 per maund, while central Sindh lint was again neglected and was traded around Rs2,350.
“The crop shortfall of about 1.4m bales for the latest fortnight should have heated the local market beyond the spinner control but some international factors did not allow speculative rise”, cotton analysts said.
They said that it was now pretty sure that a big crop shortfall gap so far was not that easy to be bridged, but despite this fact prices remained stable around the previous levels as spinners played their buying cards judiciously.
“The persistent decline in New York cotton futures and allied markets seems to be keeping the market in balance amid fears of resumption of import of lint by the spinners and mills”, they said.
The other positive factor which ensures competitive price to the spinners is flooding of the ginneries by the growers who are not inclined to hold long positions perhaps having in mind the sowing of wheat after picking phutti, they added.
There is bit haste on the part of growers to clear the cotton fields as early as possible to prepare land for the wheat crop. Sowing has already resumed in some areas and will continue until early January.
New York cotton futures were further marked down by 0.55 and 0.41 cents at 50.41 and 53.60 cents per lb for both the ruling December and the forward March contracts respectively.
But there was again no change in the official spot rates which remained pegged at Rs2,350 per maund for an average quality.
Ready business totalled 10,000 bales, the following being some of the notable deals.
SINDH TYPE: 800 bales, Sanghar at Rs2,225 and 200 bales, Shahpur Chakkar at Rs2,350.
PUNJAB VARIETY: 400 bales, Rajanpur, 600 bales, Jhang, at Rs2,375, 400 bales, Haroonabad at Rs2,385, 800 bales, Hasilpur, 1,000 bales, each Chistian and Bahawalpur, 600 bales, Vehari, 400 bales, Burewala, 600 bales, Khanewal, 1,000 bales each, Gojra, and Muridwala, 400 bales, Sahiwal and 200 bales, Mamon Kanjan at Rs2,400.
