KARACHI: The cotton market on Wednesday witnessed another briskly traded session as spinners and mills were not inclined to take even a technical breather and continued to build-up long positions at the prevailing prices.
“After a relative lull during the last couple of weeks despite falling prices, all the bulls, notably the spinners, private sector exporters and some foreign buyers have joined hands apparently to grab the entire floating stock around the current levels,” analysts said.
The price situation was further accentuated by the grand rebound staged by the New York cotton futures on the revival of foreign demand, they said and added “local market mostly responded positively to any bull or bear-run on the New York futures market.”
But the interesting feature was that prices did not keep face with the panic buying apparently because of oversupply of lint owing to steady arrival of phutti during post-Eid holiday trading operations.
An idea of prevailing panic may well be had from the fact that another 40,000 bales, mostly big lots, changed hands at an average rate of Rs5,600 per maund for fine lots, but some of the contamination-free lots, notably from the Mianwali, were sold at the highest level of Rs6,000.
Official spot rates were again firmly held at the overnight level of Rs5,500 per maund but fine lots were traded well above them.
But on the other hand, New York cotton futures were quoted higher more than limit gain of 4.00 cents per for the forward March contract, while the ruling December rose by 1.87 at 100.62 and 102.66 cents per lb, respectively.
The following are some of the big deals reported by the Karachi Brokers Forum on Wednesday:
SINDH TYPE: 400 bales each Mirpurkhas, Shahdadpur and Kanderio at Rs4,400, to 4,800, 600 bales, New Saeedabad at Rs5,000 to 5,100, 2,000 bales, Khairpur at Rs5,200, and 3,000 bales, upper Sindh at Rs5,600 to 5,700.
PUNJAB VARIETY: 1,000 each Hasilpur, Haroonabad and Faqirwali at Rs5,400, 1,400 bales, Lodhran at Rs5,500 to 5, 600, 1,000 bales, Mian Channu at Rs5,600 and 1,800 bales, at Rs6,000, 1,000 bales, Bakhar at Rs5,550 to 5,600, 1,200 bales, Chichawatni at Rs5,550 to 5,625, 1,400 bales, Vehari at Rs5,590 to 5,600, 1,500 bales, 1,000 bales, each, and 2,000 bales, Sadiqabad, Liaquatpur, Khanpur, Rahimyar Khan, Ahmedpur East, Bahawalpur and Duyniapur at Rs5,600, 1,200 bales, Burewala at Rs5,600 to 5,700, 2,000 bales, Kabirwala at Rs5,600 to 5,800 and 2,000 bales, Rajanpur at Rs5,900.