Conflicting estimates mar trading on cotton market
By Our Staff Reporter
KARACHI, Dec 28: Cotton prices on Wednesday eased from the recent higher levels for no apparently immediate bearish reason but quality lint remained in active demand and at the higher levels.
Floor brokers said the official rates committee seems to have revised downward spot rates by Rs10 per maund after taking into account the average quality of lint in trade, which also included inferior lots.
However, fine lots were mostly traded around the overnight level of Rs2,400 per maund, up Rs35 from the spot rates but inferior lots were sold between Rs2,325 and Rs.2,375 per maund, they said.
Market sources said conflicting reports coming in from various quarters about the size of the crop appears to be the major negative factor behind the market’s volatile performance for the last couple of weeks.
“All those associated with the cotton trade are awaiting the fortnightly arrival figures of phutti due on Dec 31, and before that they are playing safe,” they added.
However, despite delivery problems and higher rates being quoted by the cargo haulers, spinners and mills remained in the market and lifted all the lots offered around Rs2,400 on the higher side and Rs2,350 on the lower side.
But leading ginners having strong holding capacity are reluctant sellers on the prevailing rates on the perception that the market is expected to heat up during the New Year, they added.
The other aiding factor could be higher New York cotton futures during the New Year trading on renewed increased global demand in the backdrop of reports of a short crop the world over.
New York cotton futures finished with fresh gains of 0.26 cents per lb for both the ruling March and forward May settlements at 53.80 and 54.40 cents per lb respectively.
Ready off-take was light totalling about 10,000 bales, all from the Pujab ginneries, following are some of the notable deals: 2,000 bales Uch Sharif;1,000 bales each Ahmedpur East Bahawalpur, Yazman; and 800 bales Lodhran at Rs2,400. 400 bales, Haroonabad at 2,325, 400 bales, Vehari at 2,340 and 600 bales Mailsi at 2,375.
