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KARACHI, Sept 21: Brisk trading activity was witnessed on the cotton market on Thursday as sellers and buyers’ price ideas seem to have found a meeting ground for the third session in a row.
It was another session of active mill buying below Rs2,700 per maund as some ginners were not inclined to hold long positions followed by reports of fresh fall in phutti prices, dealers said.
For no apparent negative news on the crop front, Sindh growers appear to be in a bit hurry to dispose of their stocks at the current levels and ginners too are reluctant to hold long
unsold positions in a market still in search of a direction, they said.
As a result, prices of phutti had declined from the peak seasonal level of Rs1,400 per 40 kg to below Rs1,200 as growers fix the price with the ginners soon after the delivery.However, varietal price difference between the Sindh and Punjab cotton lint was maintained around Rs100 per maund, the latter being sold at a premium over the former.
Some of the leading growers are dumping their phutti stocks on unfixed basis amid hopes a pick up in prices after the arrival figures for the month ending Sept 30 are released by the Pakistan Cotton Ginners Association (PCGA).
“But some of the leading ginners who have an eye on the developing cotton situation and have a fair idea of the crop shortfall, are holding on to their unsold stock for better prices,” spinners said.
Official spot rates consolidated the overnight gains, although fine lots were traded well above them.
New York cotton futures on the other hand recovered 0.74 and 0.71 points at 50.10 and 52.34 cents per lb for both the ruling October and the distant December contracts respectively.
Ready off-take was on the higher side as spinners and mills remained active buyers around the prevailing selling prices, totalling about 10,000 bales as under.
SINDH VARIETY: 1,400 bales, Mirpurkhas at Rs2,550, 800 bales, Shahdadpur at Rs2,575 to Rs2,590, 600 bales, Tando Adam at Rs2,585, 400 bales, Khipro at Rs2,540, 200 and 600 bales, Qazi Ahmed and Nawashshah at Rs2,600.
PUNJAB TYPE: 800 bales, Vehari at Rs2,650 to Rs2,675, 200 bales each Bahawalnagar, Haroonabad at Rs2,650, 400 bales, Hasilpur at Rs2,665 to Rs2,675, 200 bales, Pir Mahal, 400 bales, Chichawatni, 600 bales, Bahawalpur and 200 bales, Khanewal at Rs2,675, 200 bales and Jahania at Rs2,680.
