KARACHI, May 26: Cotton market on Saturday showed a firm trend as ginners further raised their asking prices in sympathy with the world markets, notably New York cotton futures.
“After relative calm for the last couple of weeks in the absence of normal mill demand, the cotton market on Monday showed signs of heating up as some of the leading ginners were not inclined to oblige spinners at the early week levels,” floor brokers said.
Last week some of the ginners who held stray lots of fine quality were sellers around Rs2,600 per maund but spinners were anticipating further fall in prices, they said.
But situation abruptly changed in line with the New York cotton futures after they crossed the benchmark of 50-cent per lb on revival of world demand from the major users.
As a result, a deal of fine lot was finalised at Rs2,725 per maund, while some of the leading ginners were eyeing the previous level of Rs2,800 per maund, dealers said.
They said that it was normal in market parlance that lint prices generally increased owing to short supply amid active demand.
The current market trend reflects this perception as ginners know that spinners have to prefer local lint irrespective of the import figure and higher prices, they said.
However, spinners and mills seem to have been outwitted by the ginners as they missed the opportunity when ginners were sellers at Rs2,600 per maund.
The heating up of the New York cotton market could have bullish impact on the other world markets, which could well mean expensive lint, spinners said.
New York cotton futures on Saturday were quoted higher by 1.05 and 1.26 cents per lb at 51.14 and 54.50 cents for both the ruling July and new crop October contracts respectively after the entry of Pakistan and China on the world markets to cover their forward export positions, market sources said.
Official spot rates on the other hand did not show any change and were stood firm at Rs2,650 per maund, while in physical trading some of the deals were done well above them.
Owing to higher asking prices by the ginners only 200 bales, from a Vehari ginnery changed hands at Rs2,725 per maund.
