KARACHI, Nov 23: Cotton prices on Tuesday eased from the current peak levels on ginners selling triggered by reports of higher unsold stocks of lint with the ginning factories, combined with sharp fall in the New York cotton futures.
The selling was also aided by reports of sharp fall in New York cotton futures, which virtually collapsed from the all-time peak level of 128.00 cents per lb to 121.90 cents, off 6.00 cents per lb, while the distant March contract was marked down by 5.36 cents at 117.79 per lb.
“The snap reversal was welcomed around the world,” some local cotton analysts said and expressed the hope “the decline would be accelerated as speculative rise is expected to meet its logical end.”
Although local prices did not show matching fall and were marked down only by Rs200.00 per maund, spinners hope the local market may fall the world price trend in the coming weeks also.
However, spinners were not inclined to take even a technical breather and lifted all the lots offered at the falling prices between Rs8,400 to 9,000 per maund.Their chief reason behind the active buying was that a short local crop may not allow any bigger fall in prices and it is advisable to cover forward positions at each fall.
Official spot rates were marked down by Rs200.00 per maund at Rs8,300 as compared to 8,500 a day earlier.
Ready business was on the higher side as till late in the evening about 20,000 bales changed hands, the following being some of the notable deals:
SINDH TYPE:1,000 bales, upper Sindh at Rs9,000, 2,600 bales, Nawabshah at 8,500 to 8,600, 1,000 bales Sultanabad at 8,200 to 8,550, 2,400 bales, Shahadadpur at 8,500 to 8,600, 1,000 bales, Mirpurkhas at 8,400 to 8,500 and 1,000 bales, Khairpur at 8,650.
PUNJAB VARIETY: 1,000 bales, Mianwali at Rs9,000, 2,000 bales, Khanpur also at 9,00,1,400 bales, Junpur at 8,600 to 9,000, 2,200 bales, Liaquatpur at 8,500 to 8,800,1,000 bales, Tunsa Sharif at 8,800,1,000 bales, Haroonabad at 8,400,600 bales, Bahawalpur at 8,500,400 bales, each Hasilpur, Mubarakpur, 200 bales, Rahimyar Khan and 600 bales, Sadiqabad at 8,500.