KARACHI, Sept 4: Cotton prices on Tuesday eased further by Rs125 per maund in physical trading as some of the leading ginners indulged in hasty selling after having an overview of the size of phutti arrivals.
The sudden pick up in arrivals of phutti may not necessarily be a prelude to higher crop ideas but reflected worries among the growers about the future price outlook, said a broker.
As a result, ginners lowered prices of lint accordingly as no one among them was inclined to take risk in a market, which has now become a bit erratic, he added.
Most of the deals including some big ones in Sindh lint were finalised between Rs2,775 to 2,850 per maund, while in Punjab around Rs2,825 to 2,900 depending on the quality of lint.
“The market seems to be heading toward sanity as speculative run-up is fading by each session,” market sources said adding the crop may not be that higher but grower is steadily loosening his grip on the selling price.”Stepped up selling of phutti and at a lower rates and fixing prices for the unfixed lots shows an uncertain future price outlook among the growers most of them are not in a mood to hold long positions for longer periods owing to price fluctuations, they said.
But most cotton analysts believe the fear of larger crop in the major growing areas including upper Sindh and southern Punjab, where picking operations of phutti have just started, could be one of unsettling factor and snap change in the market psychology.
It was in this background that official spot rates were revised downward by Rs50 per maund but in the ready section most of the deals were done slightly above them.
Spinners and mills lifted about 20,000 bales at the falling prices, the following being some of the notable deals:
SINDH TYPE: 4,000 bales, Tando Adam,1,200 bales, Shahdadpur,1,000 bales, Nawabshah at Rs2,800 to 2,850, 1,000 bales, each Sanghar and Mirpurkhas at 2,800 to 2,825, 1,000 bales, Khipro at 2,775 to 2,800,400 bales, Jhole at 2,850 and 200 bales, Sinjoro at 2,825.
PUNJAB VARIETY: 400 bales, Burewala at Rs2,900 to 2,925, 600 bales, Sahiwal at 2,850 to 2,875, 200 bales, Bahawalnagar at 2,875 and 400 bales, Pak Pattan at 2,900.
