KARACHI, May 17: Physical activity on the cotton market on Thursday showed signs of revival as some of the spinners resumed normal covering operations against their forward sales but well below the ginner asking prices.
After several lean sessions stray big-lot business was witnessed as some of the spinners purchased both low-mix and fine lots offered by the ginners after a long wait in anticipation of a price flare-up, brokers said.
But some others said a sharp rebound staged by the New York cotton futures during the last couple of sessions worried spinners and mills on the perception that local prices could rise higher in sympathy with world markets.
Over the last couple of sessions, New York cotton futures have steadily recovered from 47 cents to 49.19 cents per lb for the ruling July contract, signaling that it is heading to rise above the benchmark or 50 cents per lb.
While the July delivery was quoted higher by 1.44 cents at 49.19, the forward October rose by 1.28 cents at 52.03 cents per lb.
“We have to keep an eye on international prices as we are on the world market as one of the biggest buyers after China to make up local crop shortfall,” spinners said adding “the current recovery in world prices reflects our presence there.”
Some of the leading spinners, who have an eye on the international price trends are said to have made several forward deals below the 50-cents per lb mark, they added.
However, it is too early to speculate whether or not local prices would rise further in sympathy with the international ones as ginners seem to be in no mood to hold long unsold positions for an indefinite period.
Official spot rates were quoted lower at the overnight level of Rs2,675 per maund but in the ready section deals were finalised on quality basis.
The following are some of the deals, which were gone through late on Thursday evening: 2,500 bales, upper Sindh, at Rs2,550 and 2,000 bales, Vehari at 2,700 to 2,725.
