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KARACHI, Nov 10: Trading on the cotton market on Monday resumed on a firm note as spinners were not inclined to take an overview of the developing situation on the supply front and continued to make panic-buying.
Unlike the previous sessions, some big-lot business was reported as leading spinners and mills tried to grab the floating stock of contamination-free and fine lots mostly at the ginners asking prices, dealers said.
For the last couple of sessions, bulk of the business is being transacted at Rs3,400 for the Punjab lint and upper Sindh lint, while central Sindh variety is fetching prices according to quality and average being Rs3,250 per maund, without 15 per cent sales tax, they added.
“An idea of panic mill buying may well be had from the fact that most of the deals reportedly finalized late on Saturday evening and on Monday consisted of big lots of 1,000 to 4,000 bales,” says a leading floor broker.
According to him spinners and mills lifted about 50,000 bales at the weekend sessions well before the reopening of the New York cotton futures on Monday, as the opening rates are considered a benchmark price here by the ginners.
He said the local prices are generally guided by the New York cotton futures since the bull-run on the local market as ginners await their opening before finalizing fresh deals.
The current stability in lint prices was also attributed to higher phutti prices, which averaged between Rs1,265 to Rs1,277 per 40 kg for Hyderabad and Sakrand and Rs1,451 to Rs1,538 for the Rahimyar Khan and Multan centres during the last week.
As a result, lint prices remained stable around Rs3,400 per maund and may stay at this level as pressure on the ready supplies continues amid fears of a short crop, dealers said.
Official spot rates did not show any change and were firmly held at the last level of Rs3,325 per maund.
Ready offtake was on the higher side as about 50,000 bales changed hands on Saturday evening. The following being some of the notable deals:
SINDH TYPE: 2,000 bales, K-68 from Khairpur at Rs3,350.
PUNJAB VARIETY: 3,000 bales, Faisalabad, 2,000 bales, Burewala and 400 Sharifabad at Rs3,350 to Rs3,400, 3,000 bales Rahimyar Khan, 4,000 bales, Bahawalpur, 1,000 bales, Khanpur, 2,000 bales, Ahmedpur East, 1,000 bales, Sadiqabad, 2,000 bales, Alipur 1,000 bales, Lodhran, 1,000 bales, Jalalpur 1,400 bales, Khanewal, 1,000 bales, Chichawatni and 1,000 bales, Chistian at Rs3,400.
