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January 08, 2008
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Tuesday
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Zilhaj 28, 1428
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Cotton trading resumes on bullish note
By Our Staff Reporter
KARACHI, Jan 7: Trading on the cotton market on Monday resumed on a bullish note as mills and spinners continued to build-up long positions at the current levels owing to pressure on ready supplies.
An idea of mill buying may well be had from the fact that there was no retail business as most of the deals finalised were well above 1,000 bales, including 8,000 bales from the Rahimyar Khan ginneries, floor brokers said.
The mill off-take rose to well over 30,000 bales, with an average rate of Rs3,150 to 3,250, bulk of it was again confined to the Punjab lint, they said.
Cotton analysts said the notable feature of the trading was that most of the deals were quality-based as some leading spinners and mills were willing to pay as higher price as Rs3,300 per maund for fine lots.
They said leading mills and spinners had managed so far to contain prices below Rs3,300 per maund as they were not inclined to go above this rates owing to export parity problems.“But demand and supply factors in the backdrop of higher world prices indicate that the current status quo may be maintained for a long period as further pressure on ready supplies could add to the current price levels,” they added.That is perhaps why spinners are not inclined to take even a brief breather and lift all the lots offered for sale by the ginners in each session, some others said.
It was perhaps in this background that official spot rates were revised upward by Rs25 at Rs3.150 per maund, although most of the deals in the ready section were done well above them.
The following were some of the important deals on Monday evening:
SINDH TYPE: 1,000 bales, Shahdadpur at Rs3,200, and 2,000 bales, Khipro at 3,185.
PUNJAB VARIETY: 8,000 bales, Rahimyar Khan at Rs3,300, 4,000 bales, and 3,000 bales, Khanpur and Khanewal at 3,250 to 3,300, 1,000 bales, each Liaquatpur, Sadiqabad and Rajanpur at 3,200 to 3,250, 1,000 bales, D G Khan at 3,175 to 3,200, 1,000 bales, Bahawalpur at 3,150 to 3,250 and 1,000 bales, Ahmedpur East at 3,200.
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