KARACHI, Nov 17: Physical activity on the cotton market on Saturday was maintained on the higher side as spinners and mills were not inclined to take even a technical breather amid conflicting reports about the size of the crop.
Some of the big deals including a big-lot of 5,000 bales from the Rahimyar Khan ginneries were finalised at Rs3,300 per maund, which was said to be the season’s highest rate, floor brokers said.
They predicted the expected crop shortfall may flare up prices in the coming sessions also as panic-buying by some of the leading spinners and mills at the current levels would encourage ginners to jack up their asking prices.
But on the other hand phutti (seed cotton) prices are stable around Rs1,575 to Rs1,650 per 40 kg for the last couple of weeks as small growers have already sold out their stocks at these rates, while big ones are still holding on to their unsold positions anticipating further pressure on supplies, they added.
Although arrival figures for the fortnight ended Nov 15, are a bit late and are expected to be released by the Pakistan Cotton Ginners Association (PCGA) on Monday, unofficial surveys conducted by some of the mills and private agencies indicate a shortfall of about 0.8m bales for the current fortnight.
According to them arrivals of around 1.8m bales in Sindh ginneries are in line with the official projection, Punjab may suffer a shortfall of about 0.6m bales at about 7m bales.
But a leading cotton analyst Naseem Usman said the total crop was expected to be short by about a million bales against the revised official production target of 12.8m bales at 12.5m bales.
However, spinners and mills are not in a happy position as prices of textiles did not show a corresponding increase both on the local and foreign market as did cotton, he added.
Official spot rates were again firmly held at the last levels, although most of the deals in the ready section were done well above them.
Mill ready off-take was on the higher side totalling about 30,000 bales, the following being some of the notable deals.
SINDH VARIETY: 2,000 bales, Shahdadpur at Rs3,200, 1,000 bales, Upper Sindh at Rs3,250 and 1,000 bales, Khairpur at Rs3,200.
PUNJAB VARIRTY: 1,000 bales, Rajanpur at Rs3,300, 1,200 bales, Layyah, 2,000 bales each Bahawalpur and Ahmedpur East at Rs3,250, 1,000 bales, each Chichawatni and Mian Channu at Rs3,275.
