KARACHI, Oct 29: Trading on the cotton market on Monday resumed on a bullish note as prices were quoted further higher by Rs50 per maund amid conflicting reports about the size of the crop owing to feared damage to the crop and panic mill buying.
Later in the evening fine lots from the Punjab cotton belt were traded as higher as Rs3,150 on panic mill buying and cotton analysts predict prices could rise further higher in the coming weeks.
“The crop is expected to be well below the target of 14m bales,” said a leading cotton analyst adding “a positive figure could be around 12.5m bales based on the current crop surveys conducted by various agencies”.
Spinners, who knew more than any one about the size of the crop through their monitoring network, are out to grab the floating stock, which in turn pushing prices higher, said a broker.
Cotton trade is again edging towards a new crisis, said a leading spinners the chief victim could be the textile industry as lint is becoming too expensive each day , which may cause decline in export of textiles.
Owing to crop shortages in some of the leading producing countries prices are expensive but the disturbing factor is that the prices of the end products are not showing corresponding rise, they added.
They said the market has again slipped into the hands of the grower
who is dictating prices through a remote control device, dealers said adding: “He is inclined to push phutti prices further higher to previous all-time record of Rs3,650 per maund a couple of year ago when he sold phutti at Rs1,700 per 40 kg”.
Official spot rates were quoted further higher by Rs50 to Rs3,000 per maund, while in the ready section some of the deals were done well above 3,000 per maund.
Ready off-take was on the higher side including some big-lot totaling about 50,000 bales as under:
SINDH TYPE: 5,000 bales, Shahdadpur at Rs3,075 to 3,100, 1,000 bales, each Mirpurkhas, Khipro, Shahpur Chakkar, 2,000 bales, and Sanghar 4,000 bales, upper Sind at Rs2,050 to 3,100.
PUNJAB VARIETY: 2,000 bales, Rajanpur at 3,150, 2,000 bales, Ahmedpur East at 3,100 to 3,125, 800 bales, Mubarakpur at 3,100, 1,000 bales, each, Khanewal, Arifwala, 1,000 bales Muridwala, Rahimyar Khan and 1,200 bales Burewala at 3,150 and 400 bales, Sadiqabad also at this rate.
