KARACHI, June 30: The cotton market on Friday closed the last session of the year on a firm note as ginners remained in a dominating position throughout owing to a short crop and rising mill demand.
Prices over the last fiscal steadily rose from the early lows as lower crop figures continued to inspire active mill demand and followed persistent increase in lint prices, dealers said.
At the fag-end of the year some of the deals were finalised slightly below Rs2,700 per maund, while forward deals on two-month credit were
Finalised at Rs2,800 per maund, indicating that the new crop lint may remain expensive during the new year also, they added.
During the year, the TCP also disposed bulk of its earlier procured stocks to both local and foreign buyers in the backdrop of world rates, the highest being around Rs2,600 per maund and 51.25 cent per lb, respectively.
Meanwhile, new crop (phutti) is arriving though on a modest scale in some of the Mirpurkhas ginneries. Price being quoted are at Rs1,110 to 1,125 per 40 kg as compared to official procurement rate of Rs1,025.
In the central Punjab cotton belt where picking of phutti has also been resumed, prices are quoted around Rs1,050 and most of the growers are fixing their produce at this rate, they said.
However, unlike the previous seasons, Punjab ginners did not purchase phutti from the lower Sindh growers owing perhaps resumption of picking operations in the Chichawatni area a bit early, market source said.
Ginners are active buyers around these levels as after adding processing costs, the current selling rates of lint leave fair profit margins to them.
Official spot rates were again firmly held unchanged at the previous levels but most of the deals done in the ready section were finalised on the higher side.
New York cotton futures on the other hand turned mixed and while matured July was rung off with a fresh rise of 0.75 cents per lb at 49.50, the ruling October fell by 0.50 cents at 51.80 cents per lb.
Ready business was active but all the deals were exporters to mills as under:4,098 bales, from various stations at Rs2,685.00 per maund, 1,000 bales, at Rs2,695 and 300 bales, Daulatpur at Rs2,800 on two-month credit.
