KARACHI, Dec 14: Cotton prices fell by Rs200 to 300 per maund on Wednesday as ginners sold in a bit haste a good part of their long positions amid confusion about the TCP’s entry into the cotton trade as a second buyer.
But analysts attributed the decline to a steep decline in the New York cotton futures a day earlier and fears that imports may be cheaper than the local prices.
Most of the deals in the Punjab variety were done between Rs4,900 and 5,200 per maund as compared to Rs5,100 to 5,400 per maund a day earlier.
However, some others said the selling was not linked to international bearish factor but was caused by fears of over-supply and falling phutti prices.
The steady inflow of phutti was notably from the Punjab growers after apparently having disappointed by the late official moves to ensure a fair return to growers, they added.
But whether or not the TCP is ready to assume the responsibility in an uncertain export market was not clear so far, they added.
It was in this background that after about a week, spot rates were lowered by Rs100 per maund but in the ready section and some of the deals in the Punjab type were done as lower as Rs200 to 400 per maund.
New York cotton futures on the other hand resisted fresh decline on speculative support at the dips and were quoted modestly higher by 0.15 and 0.11 cents per lb at 87.31 and 87.17 for both the ruling March and forward May contracts respectively.
Mills ready off-take was on the higher side at the falling prices and about 25,000 bales changed hands as under:
SINDH TYPE: 600 bales, Mirpurkhas at Rs.3,600 to 3,800, 400 bales, Shahadadpur at 4,150,2,000 bales, Khairpur at 4,500, 2,000 bales, upper Sindh at 5,050.
PUNJAB VARIETY: 1,000 bales, Faqirwali at Rs4,800, 2,000 bales, Haroonabad at 4,800 to 4,900, 400 bales, each Fort Abbas, Chishtian, Bahawalpur, Hasilpur at 4,900, 800 bales Arifwala at 4,950, 200 bales, each Layyah and Multan at 5,000, 400 bales, Shujabad at 5,510 to 5,100, 2,000 bales, Khanewal at 5,050 to 5,200 400 bales, Rahimyar Khan, 1,000 bales, Sadiqabad and Bakhar at 5,100, 800 bales, Chinigoth at 5,100 to 5,200, 2,000 bales, Rajanpur at 5,100 to 5,200, 400 bales, Mianwali at 5,150 and 800 bales, DG Khan at 5,200.