KARACHI, Sept 18: Trading on the cotton market on Monday resumed on a steady note as spinners and mills continued to cover their forward positions at the prevailing rates. Latest crop estimates, according to unofficial surveys,” indicate the crop though may be a bit short but is expected to touch the last year figure above 12m bales, market sources said.This perception shared by both the sellers and buyers has almost stabilised prices at a competitive levels, which apparently suit to both, they added.

Floor brokers said active mill buying over the last couple of sessions reflects that the current rates are in line with the export parity level of spinners.

“A rate around Rs2,700 or more is well above our export parity level,” says a leading spinner referring to last week higher asking prices by the ginners, adding “the activity picked up after ginners revised downward their rates around Rs2,650 or below it”.

Ginners said growers appears to be in a bit haste and sold in near-panic their phutti and prices progressively fell from the last week’s peak level of Rs1,400 per 40-kg to Rs1,200 to Rs1,250.

“We are currently operating on overheads -- conversion charges -- and are not inclined to take risk of holding on to the unsold stocks of lint in a market not clear about the size of the crop,” says a leading ginner.

However, active short-covering by the spinners between Rs2,540 to Rs2,600 per maund for Sindh type reflects that both the sellers and the buyers have a margin.

Official spot rates were firmly held at the last week’s level of Rs2,575 per maund but most of the deals both in Sindh and Punjab types were done well below them depending on quality.

Ready off-take was modest totalling about 7,000 bales, the following being some of the notable deals.

SINDH VARIETY: 1,000 bales, Shahdadpur at Rs2,580 to Rs2,600, 600 bales, Sanghar at Rs2,540 to Rs2,550, 200 bales, each Nawabshah, Sakrand, Hala at Rs2,600, 200 bales, Jhole at Rs2,575, 200 bales, Jhole at Rs2,580 and 600 bales, Shahpur Chakkar at Rs2,500 to Rs2,525.