KARACHI, Nov 22: Cotton market on Monday resumed trading on a higher note as spinners and mills were not inclined to take even a technical breather as no one among them was inclined to miss the bandwagon.
“There appears to be a mad rush to grab the floating stocks irrespective of price tag in the backdrop of a short crop”, said a leading cotton broker, but some others said the lint price spike is fuelled by the higher phutti prices”.
Later in the evening, some of the big deals were done well above Rs9,000 per maund as ginners are now eyeing the figure of Rs10,000.
According to local ginners farmers are not inclined to sell their phutti below Rs4,000 per maund and that is why the lint prices are ruling higher owing to speculative activity.
“The cotton market is literally in the hands of the grower despite the fact the leading among them have already sold their stocks at Rs3,500 to 4,000 per maund”, they said, adding: “Those including some big ones still hold on to their long positions are setting the market trend”.
Official spot rates were quoted further higher at Rs8,500 per maund but most of the deals in the ready section were done well above them.
The following are some of the notable deals reported in the ready section late on Monday evening;
SINDH TYPE: 1,200 and 800 bales, Nawabshah, Shahdadpur and 400 bales Hala at Rs8,800, 800 bales, Mirpurkhas at Rs8,700 to 8,850, and 2,000 bales, upper Sindh at 9,000.
PUNJAB VARIETY: 3,600 bales Khanpur and 2,000 bales, Sadiqabad at Rs9,000, 600 bales, Khanewal at Rs8,700, 1,000 bales, Haroonabad at 8,800, 400 bales, Bahawalpur at 8,950, 1,000 bales, Rahimyar Khan at 8,800 to 9,000, 600 bales, Fort Abbas at 8,900, 1,600 bales, Burewala at 8,900 to 9,000 and 400 bales, Rajanpur at 9,000, and 400 bales, Shujaabad at 8,8,00.