KARACHI, Oct 22: Trading on the cotton market on Monday resumed on a firm note as ginners raised their asking prices followed by reports that arrivals of phutti were progressively drying up.
But local brokers said the interruption in arrivals was caused by the delivery problems owing to Eid holidays and the October 18 carnage in which over 130 innocent people were killed.As a matter of fact prices should have decline in the backdrop of higher phutti arrivals during the last fortnight ended Oct 15 rather showing upward drive, they added.
According to Pakistan Cotton Ginners Association (PCGA) figures the phutti arrivals showed an increase of about 0.9m bales at 2.7m bales during the fortnight under review as against 1.8m bales the last fortnight which should have triggered selling by the ginners instead increase in lint prices, some others said.
Out of the total of 2.7m bales, spinners purchased 2.1m bales and the private exporters about 38,000 bales, leaving an unsold stock of 0.566m bales with the ginners.
The price flare-up was caused apparently by short supply and holding back of stocks by the ginners as cargo haulers demanded higher freight rates because of the poor law and order situation in the city, some others said.They said prices were expected to ease from the current levels after the phutti arrivals got normal in the upcoming sessions.
But some others said there were chances of further hike in prices in sympathy of foreign markets where the lint had become a bit more expensive for the last couple of weeks owing to pressure on supplies followed by reports of short crop in some of the leading producing countries.
Official spot rates were quoted higher by Rs25 per maund but stray lots changed hands well above them.In the ready section about 3,000 bales changed hands mostly from the Punjab ginneries, while there was a relative quiet on the Sindh markets.
