20,000 cotton bales change hands on active trading
By Our Staff Reporter
KARACHI, March 17: Trading on the cotton market on Monday resumed on higher note as leading mills and spinners were not inclined to take a technical breather and lifted all the lots offered by the ginners even at the higher rates.
About 20,000 bales, including some big lots ranging from 3,000 to 4,000 bales changed hand at an average rate of Rs3,450 per maund, the highest and the lowest rates being Rs3,590 and Rs3,250, respectively.
After having assessed the local supply position in the backdrop of higher world prices, spinners opted for the local stuff as ginners held on to their positions and did not waver, floor brokers said.
That is perhaps why they now appear to be in a commanding position and naming their own asking prices, which in most cases are being obliged by the spinners, they added.
After having remained out of the market for the last couple of weeks amid hopes that ginners will lower their asking prices owing to falling demand but ginners did not oblige and held on to their positions rather than lowering their asking prices.
“It may be pretty difficult to predict about the future local price outlook, a short crop and higher world prices suggest that there could be fresh increase based on supply and demand factors,” market sources said.
It was perhaps because of the current thinking on the issue that spinners are back in the market and had resumed normal daily buying activity mostly at the ginners’ options, they added.
Meanwhile, industry sources said standoff on lint import continues as the issue of raise in prices in line with world prices as demanded by the Indian exporters is said to be still unresolved.
It was in this background that prices of an average quality of lint were held at the last level of Rs3,300 per maund but fine lots were traded at much higher rates.
The following are some of the notable deals, which were gone through on Monday evening:
SINDH TYPE: 2,000 bales, upper Sindh at Rs3,450 to Rs3,500.
PUNJAB VARIETY: 2,800 bales, Khanpur at Rs3,400 to Rs3,500, 1,600 bales, Rajanpur at Rs3,350 to Rs3,450, 1,600 bales, Rahimyar Khan at Rs3,250, 3,000 bales Kabirwala at Rs3,475, 4,000 bales, Jalalpur at Rs3,450 and 600 bales, Jahania at Rs3,590.
