KARACHI, Oct 10: Trading activity on the cotton market on Wednesday was relatively slow as sellers and buyers kept to the sidelines most of the time.
It has been customary with the cotton trade that brokers generally do not entertain fresh buying orders from the mills on the post-Shabe Qadr trading session to avoid brokerage tricks linked to price manoeuvring, said a leading broker in a lighter vein.
“Let there could be a session honestly traded under normal business ethics,” he said, and that is not to indulge in any business both on the part of the ginner and the spinner.
“After having prayed all the night seeking Allah’s forgiveness on sins and more wealth, one can easily afford a session without any physical transaction,” some others said.
Spinners, however, claimed that the delivery problems before Eid was the main problem behind buyers’ absence from the market and to purchase lint with delivery after Eid holiday involves financial risks as anything adverse could happen during the intervening closures.
The next two sessions preceding the Eid may witness stray activity as needy spinners may require immediate supplies from the local brokers who have stocks in their godowns, market sources said.
In the absence of local business, spinners and mills come to each other’s help known in market parlance as inter-mill deals both on cash and kind basis, they said.
Meanwhile, reports coming from the entire cotton belt indicate that arrivals of phutti are fairly steady as leading growers are inclined to clear their unsold positions before the long weekend ahead.
Some of the ginners claimed growers have lowered their asking prices on cash basis but some others have dumped their phutti on unfixed basis and may fix prices after the holidays.
New York cotton futures showed modest rise of 0.55 and 0.49 cents per lb at 62.98 and 66.70 for both the ruling December and the newcomer March settlements respectively.
The matured October contract was rung off the board at 59.48 cents per lb and debut of the March delivery at 66.70 cents per lb reflects that the lint may be a bit expensive during the new year.
There was, however, no change in the official spot rates, which were quoted unchanged at the overnight level of Rs2,825 per maund.
No business was reported in the ready section, although prices in kerb trading were reported on the lower side.
