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KARACHI, Oct 17: An air of optimism prevailed on the cotton market on Wednesday as spinners made active covering purchases buoyed by reports of 15 per cent increase in textile export quota and custom duty waiver by the European countries.
Market talks that US may follow the suit to compensate for the war losses sent a wave of optimism in the spinning and textile sector, which resumed their normal market operations at the prevailing prices.
“Prices are sure to rise from the current levels in the wake of developing scenario on the export front as spinners are expected to rush for fresh supplies”, predicts a leading floor broker.
Ginners were also a bit happy on fresh news coming in from its foreign allies to bail-out Pakistan from the negative impact of Afghan war on its trade and industry and assessing the post-waiver scenario.
“The ruling prices may suit spinners but not to the growers and the ginners”, claims a ginner “we will have to chalk out a new strategy to benefit from the foreign concessions along with the spinners.”
Spinners and mills that have curtailed their daily offtake since the start of the US attacks on Afghanistan amid fears of fall in exports as foreign buyers have withheld fresh orders were back in the market but ginners appear to be reluctant sellers.
Dealers said the market may take a technical breather before resuming normal trading sessions after the parties involved in the cotton business have refixed their priorities in the changed situation.
Official spot rates were maintained at the previous levels but New York cotton futures recovered from the recent lows and were quoted higher by 0.14 and 0.27 cents per lb at 31.47 and 33.20 cents per lb for both the maturing October and the ruling December settlements respectively.
Major thrust was now on the Punjab varieties as spinners were out to cover positions below Rs1,700 and lifted all the lots offered by ginners late in the evening, the following being some of the notable deals:
SINDH TYPE: 200 bales of Sanghar at Rs1,650, 200 bales of Shahdadpur at Rs1,650, 200 bales of Nawabshah at Rs1,650.
PUNJAB VARIETY: 200 bales of PakPattan at Rs1,625, 400 bales of Burewala at Rs1,650 to Rs1,665, 400 bales of Lodhran at Rs1,685 to Rs1,700, 200 bales of D.G. Khna at Rs1,650, 200 bales of Hasilpur at Rs1,685, 200 bales of Khanewal at Rs1,700, 1,400 bales of Bahawalpur at Rs1,690 to Rs1,700, 400 bales of Muridwala at Rs1,610 to Rs1,650 and 200 bales of Nurpur at Rs1,700.
