Spinners, mills take long positions amid brisk trading
By Our Staff Reporter
KARACHI, Nov 28: Brisk trading was again witnessed on the cotton market on Wednesday as spinners and mills continued to build-up long positions at an average of Rs3,150 per maund.
The last couple of sessions’ mill intake reflects that they are out to grab the entire floating stock of lint below Rs3,200 per maund as it is claimed to be a competitive rate in line with their export parity levels, said a leading floor broker.
“It appears to be an unwritten deal between the spinners and the ginners in an apparent effort to force growers to lower their asking price for phutti,” he added.
Ginners’ decision not to buy phutti from the growers until Dec 1, however, did not deter them to hold on to their unsold positions after having lowered prices modestly by Rs50 per maund, some others said.
“We are not in a hurry to dump phutti at the lower rates below our parity levels after adding the higher cost of inputs,” said a leading grower. “We will comfortably hold on to our stocks up to January as the colour of the phutti remains natural by that time.
Ginners have to oblige us early next month as they have to keep wheels of their factories moving and without us they can’t”, he added.
Market sources said it was a no-win situation for all those associated with cotton trade and they have to cooperate with each other for the collective benefit.
As a result official spot rates were firmly held at the last level of Rs3,075 per maund well below those at which ready business was done.
Mill ready off-take was on the higher side where a total 25,000 bales changed hands, the following being some of the notable deals.
SINDH TYPE: 2,400 bales, Dadu at Rs3,100 to 3,115, 1,200 bales, Khipro at 3,085 to 3,100, 2,000 bales, Shahdadpur at 3,075 to 3,185, and 1,500 bales, upper Sindh at 3,175.
PUNJAB VARIETY: 2,000 bales Bahawalnagar at 3,100, 2,400 bales, Khanpur, 400 bales each Sardar Rind and Kehror Pacca at 3,75.00, 2,000, Alipur at 3,150 to 3,160, 2,000 bales, D.G.Khan, 1,000 bales each, Bahawalpur, Ahmedpur East, Jampur, 800 bales, Muhammadpur Dewan, 400 bales each, Liaquatpur, Khanewal, Galliwal, Sadiqabad, Jalalpur, 600 bales, Garma Raja, at Rs3,150 and 1,000 bales, Rajanpur at 3,150 to 3,200.
