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May 17, 2008
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Saturday
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Jamadi-ul-Awwal 11, 1429
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Cotton market stays firm on hectic buying
By Our Staff Reporter
KARACHI, May 16: Cotton market on Friday maintained a firm trend as spinners and mills remained active buyers at the higher asking prices by the ginners.
Some of the deals in the ready section were finalised as higher as Rs3,650 per maund, the average rate being Rs3,500 as some of the spinners were inclined to lift all the lots offered by the ginners of upper Sindh and Punjab cotton belt, floor brokers said.
Modest recovery staged by the New York cotton futures after last couple of sessions’ persistent fall was, they said, another supporting positive factor for the local lint.
Market sources said some of the leading spinners and mills, which kept to the sidelines anticipating panic selling by the ginners, resumed their normal daily operations and intend to buy the unsold stock from the ginners well before the arrival of the new crop.
Spinners fear that the current crop prices may also show sympathetic increase in line with the new crop as forward deals in it are being made as higher as Rs3,900 per maund for delivery by the middle of the next month. However, rationale behind the spinners’ perception to buy a modest new crop lot of 200 bales at Rs3,900 per maund appear to be a bit confused as fine lots of the current crop are available at much lower rates, they said.
“It appears to be the brainchild of some speculative traders to rope in spinners for a possible hike in the new crop lint to around Rs4,000 per maund,” they fear adding, “But leading spinners may not be that fool because they have to sell their products on the international markets and know the tricks of the game fully well.”
New York cotton futures were quoted higher by 0.14 cents per lb at 70.13 and 75.77 cents for both the new crop ruling July and October settlements, respectively.
Official spot rates on the other hand were firmly held at the overnight higher level of Rs3,450 per maund.
The following are some of the notable deals, which were gone through in the ready section: 800 bales, Khipro at Rs3,500, 1,400 bales, Rahim Yar Khan at Rs3,500 to Rs3,650 and 200 bales, Sadiqabad at Rs3,500.
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