KARACHI, Dec 30: Cotton prices maintained their upward drive for the second consecutive session on Tuesday as spinners and mills continued to make panic buying amid fears of pressure on future supplies of lint.
Official spot rates were, therefore, quoted further higher by Rs50 per maund at Rs3,150 but bulk of the business transacted in the ready section was finalised at Rs3,200 per maund for fine types.
“The current mill buying euphoria may not necessarily reflect a price war between the spinners and the TCP but a tendency to ensure future supplies,” cotton analysts said.
But some other said the spinners are out to push prices well above the official procurement rate of Rs3,205 per 40kgs to assume the role of a single buyer.
The current price flare-up witnessed during the last couple of sessions indicates that a big cartel of spinners and mills, having enormous funds at their disposal could push prices further higher and leading among them seem to be united on the issue as was reflected by an increase of Rs300 per maund in prices during the last couple of sessions, they said.
With the grower out of the arena after having sold bulk of his stocks of phutti, they said, the market is progressively slipping into the hands of the ginner who will name his own prices in the new year cotton trading, they added.
Although unlike the previous couple of sessions, there were not many big-lot deals, and retail lots dominated the list, turnover figure was maintained on the higher side.
Official spot rates were quoted further higher by Rs50 per maund at Rs3,150 amid an actively traded session.
New York cotton futures on the other hand showed divergent trend. While the March contract rose by 0.07 cents per lb, the forward May fell by 0.20 cents at 46.25 and 46.60 cents, respectively.
The following are some of the notable deals done in the ready section late on Tuesday evening:
SINDH TYPE: 1,200 bales, Dadu at Rs3,000 to 3,050, 600 bales, Rohri at 3,150, 200 bales, Shahdadpur at Rs2,900, 200 bales, Kadro at Rs2,950, 200 bales each, Mirpurkhas and Khuzdar at Rs3,050.
PUNJAB VARIETY: 1,000, 800, 400 and 600 bales, Mian Channu, Fazilpur, Sher Sultan and Chichawatni at Rs3,200, 1,000 bales, Liaquatpur at Rs3,100,400 bales, Ahmedpur East at Rs3,185, 400 bales, Khanpur at Rs3,150 to Rs3,200, 500 bales, Pirmahal at Rs3,050, 400, each bales, Gojra, Muridwala, Kabirwala, Rajanpur, Lodhran, Hasilpur, at Rs3,150, 400 bales, DG Khan at Rs3,175, and 800 bales, Rahimyar Khan at Rs3,100 to Rs3,200.
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