KARACHI, Oct 25: Active trading was witnessed on the cotton market on Thursday as spinners and mills continued building up long positions at the current levels in an uncertain future price outlook.
About 15,000 bales changed hands between Rs2,900 and Rs3,050 per maund depending on the quality of lint, although some of the ginners raised their asking prices but spinners were not in an obliging mood, floor brokers said.
They said reports about a short crop in the Punjab cotton belt continued to haunt end-product users but they were trying to maintain a balance between the local and foreign prices after adding value to the textiles.
“Until the size of the crop or the extent of the damage is not known speculative forces will continue to tilt the price balance in their favour riding on the wave of speculation,” they added.
Spinners said imports of lint from any country at this stage were not viable as the reports of a short crop in the major cotton producing countries continued to fuel speculative demand on the New York cotton futures and in turn elsewhere.
“If the Wednesday’s steep fall on the New York cotton exchange further extended during the coming sessions, imports may be competitive, although Pakistan’s entry on the market could push prices again higher,” some others said.
New York cotton futures were marked down by 1.44 and 1.26 cents per lb at 63.82 and 68.15 cents for both the ruling December and the distant March contracts respectively.
Local official spot rates were also quoted further higher by Rs25 per maund to Rs2,900, well below those at which business was being done in the ready section.
The following important deals were reported in the ready section.
SINDH TYPE: 1,400 bales, Shahdadpur at Rs2,950 to Rs3,000, 1,200 bales, Sanghar at Rs2,925 to Rs2,975, 800 bales, Mirpurkhas at Rs2,900 to Rs2,950, 400 bales, Shahpur Chakar, New Saeedabad and Jhole at Rs2,950.
PUNJAB VARIETY: 1,000 bales, D.G. Khan at Rs3,025, 1,000 bales, Muridwala at Rs3,000 to Rs3,025, 800 bales, Khanewal at Rs3,050, 500 bales, Rajanpur at Rs3,025, 500 bales, at Rs3,050, 600 bales, Bahawalpur at Rs3,000, 400 bales, Rahimyar Khan at Rs3,025 and 600 bales, Ahmedpur East at Rs3,000.
