KARACHI, Nov 3: Cotton market on Saturday closed the weekend session on a bullish note as ginners were not inclined to lower their asking prices which were based on higher phutti rates.
“We are getting only our conversion charges for processing phutti into lint and cottonseed,” said a ginner, adding “as far as the price flare-up is concerned it is because of higher phutti prices”.
The market is in the tight grip of the grower who is not inclined to lower his asking prices saying that price increase is linked to higher cost of inputs, he added.
Growers are selling phutti between Rs1,650 and Rs1,700 per 40 kg, which is claimed to be the highest-ever rate so far in the cotton trading history, market sources said.
However, unlike the previous session most of the deals were again reported in the Punjab variety at a uniform rate of Rs3,225 for fine lots but inferior lots including from the Sindh ginneries were sold below Rs3,200 per maund.
Meanwhile, there was no immediate negative impact on the physical trading of spinners’ move to stop buying lint or go slow to check fresh rise in prices, floor brokers said.
Fresh buying orders from the mills and spinners kept pouring in even at the weekend session for delivery next week mostly at the previous levels, they said.
Official spot rates were revised upward by Rs25 per maund at Rs3,075 per maund for an average quality lint but fine lots were traded well above them.
Mill ready off-take was active totalling about 15,000 bales, the following being some of the notable deals:
PUNJAB TYPE: 400 bales, Jalalpur, 400 bales, Sahiwal, 500 bales, Arifwala, 400 bales, Pakpattan at Rs3,225, 500 bales Rajanpur at Rs3,210 and 500 bales, Rajanpur and D.G. Khan at Rs3,200.
SINDH VARIETY: 4,000 bales, Shahdadpur, Jhole, Sanghar and some other stations changed hands at Rs3,075 to Rs3,125.
