KARACHI, Feb 14: Cotton market on Wednesday maintained a steady trend as prices remained stable around the previous levels amid active mill demand.
Floor brokers said active mill demand reflects that price ideas of both the sellers and the buyers have found a meeting ground as both have a fair idea of the future supply and demand.
As result, fine varieties both from the upper Sindh and the Punjab ginneries were sold above Rs2,600 per maund, inferior lots were available between Rs2,500 to 2,550.
However, spinners fear that the current rebound staged by the New York cotton futures after several lean sessions during the last couple of weeks could push prices of foreign lint higher, dealers said.
“The cotton markets are expected to get heated after spinners seek supplies from there and that is perhaps why they are keeping a low profile for the near-term apparently hoping official nod for import from India,” they said.
Strong presence of spinners on the local market also reflects that they are inclined to lift the local stuff around the current levels before opting for imports, they said.
However, there is no two opinions about a short crop, which claimed to be well below the annual consumption needs of the industry and imports have to be made to make up the shortfall, they added.
There was, therefore, no change in the official rates, although fine lots were traded well above them.
New York cotton futures rose by 0.35 and 0.03 cents at 52.59 and 52.75 cents per lb for both the ruling March and the distant May contracts, respectively.
Ready offtake totaled about 15,000 bales, the following being some of the notable deals:
SINDH TYPE, 3,000 bales, upper Sindh at Rs2,550 to Rs2,600, and 400 bales, Sanghar at Rs2,480.
PUNJAB VARIETY: 3,000 bales, Rajanpur at Rs2,500 to Rs2,600, 1,000 bales, Haroonabad at Rs2,500, 2,000 bales, Rahimyar Khan at Rs2,550 to Rs2,600, 1,000 bales, Sadiqabad at Rs2,525 and 602 bales, Duniapur at Rs2,575.
