KARACHI, Nov 15: Brisk trading was witnessed on the cotton market on Tuesday as mills and spinners again indulged in panic-buying amid fears of pressure on the future supplies because of reports of a short crop. About 25,000 bales reported to have changed hands at Rs2,450 to Rs2,490 per maund according to official deals but local brokers said some fine lots were also traded as higher as Rs2,500 per maund including 400 bales from Khanewal at Rs2,490.
Big-lot business in southern Punjab lint including a deal of 4,000 bales from a Rahimyar Khan ginnery showed that a leading spinner group was out to corner fine lots irrespective of the price tag.
“I don’t think spinners could contain an imminent price flare-up”, they said, adding “no one could be blamed for the price flare-up as the panic originated from leading among them”.
The crop is certainly below the official target but not that short as being speculated by the spinners, market sources said “a 12m bales plus crop together with the carryover stocks including those with the TCP are enough to meet the local demand for the current year”.
Bulk of the business remained confined to the Punjab variety as spinners notably leading groups were out to grab the floating stock of fine lots at the prevailing rates, brokers said.
Sindh including upper Sindh variety, which matches the southern Punjab lint both in staple length and fibre quality was again neglected as spinners major thrust was on the contamination-free lots, they added.
Official spot rates were, therefore, consolidated the overnight gain and were held unchanged amid active trading.
But New York cotton futures on the other hand turned mixed. While the ruling December rose 0.17 cents and forward March fell by 0.40 cents at 50.89 and 53.87 cents per lb respectively.
The following some of the notable deals reported in the Punjab variety: 1,000 bales, each Alipur, Jalalpur and Bahawalpur, Shah Jamal, 800 bales Mongi Bunglow, 1,600 bales, Gojra, 600 bales, Hasilpur, 400 bales, Chistian, 400 bales, Feroza, 200 bales, Jahania, 400 bales, Muridwala, 600 bales, Sadiqabad, and 400 bales, Naurpur at Rs2,450, 1,000 bales, Uch Sharif at Rs2,450 to Rs2,460, 1,600 bales, Lodhran and 1,200 bales, Ahmedpur East at Rs2,450 to Rs2,460, 1,000 bales, Khanpur at Rs2,470, 400 bales, Khanewal at Rs2,490 and 600 bales, Haroonabad at Rs2,475.
