KARACHI: Cotton prices on Wednesday tended further higher as spinners and mills resumed their normal daily intake and ginners were quick to take advantage of the rising demand.
Floor brokers said some of the fine lots from the southern Punjab cotton belt were traded as higher as Rs6,000 per maund, up Rs300 from the previous closing rates.
“There was no apparent bullish reason behind the snap rally but some said it may be due to a fight between the big ones to grab the floating stock of fine lots”, they said.
They said the latest mill buying spree may have been caused by the perception that the duty-free relief given by the EU to 75 items, notably textiles could boost exports to any highs.
The more surprising fact was that the local market trend was quite the reverse of the global markets, notably New York cotton futures, which are again on the decline, they added.
However, the run-up despite reports of a bumper crop reflects that textile sector was heading for a record exports during the coming years as the EU is one of the major textile importer, its previous annual bill being around $3.5 billion, textile sources said.
It was in this background that the official spot rates were quoted higher by Rs100 per maund at Rs5,800 but most of the deals were based on quality of lint in trade.
The New York cotton futures on the other hand were lowered by 1.74 and 1.77 cents at 94.97 and 96.06 cents per lb for both the ruling March and forward May contracts respectively.
The following are some of the notable deals reported by the Karachi Brokers Forum on Wednesday:
SINDH TYPE: 200 bales and 400 and 800 bales, Mirpurkhas, Hyderabad, Kotri Khadro and Shahdadpur at Rs4,600.
PUNJAB VARIETY: 600 and 400 bales, each Khanewal, Yazman and Bahawalpur at Rs6,000, 1,000 bales, Rahimyar Khan at Rs5,900 to Rs6,000, 2,400 bales, Bakhar at Rs5,850, 1,000 bales, Chichawatni at Rs5,800, 2,400 bales, Sadiqabad at Rs5,750 to Rs6,000, 200 bales, Uch Sharif at Rs5,700, 800 bales, Lodhran at Rs5,600 to Rs5,800, 1,000 bales, Fort Abbas at Rs5,575 to Rs5,750, 1,000 bales, Dahranwala at Rs5,250,and 200 bales each, Faqirwali and Haroonabad also at this rate.