KARACHI: Cotton market on Tuesday remained under pressure on renewed selling by ginners amid a briskly traded session at falling prices.
Although official spot rates were lowered by another Rs100 per maund, bulk of business in the ready section was done at an average rate of Rs5,500.
Some of the fine lots from the southern Punjab ginneries were traded around Rs5,700 to 5,750.
Market sources said limit-fall in the New York cotton futures, which had dropped by about 10 cents during the last couple of sessions have a direct negative bearing on the local market and any further fall below 90 cents per lb may further destabilise the local price line.
Both the ruling December and forward March contracts were quoted lower by 4.00 and 2.86 cents per lb at 90.81 and 90.41 cents per lb.
Barring a few lots from the upper Sindh ginneries, which were traded around Rs5,100 to 5,300 per maund, others were sold below Rs4,000 because of inferior quality.
Floor brokers said ginners, notably those holding long positions, were said to be a bit worried over falling prices and some of their weaker links have joined them.
They said news from the foreign markets are not that encouraging followed by speculative selling by leading speculators operating on the New York futures market but local fundamentals tell a different story, which point out to a normal activity sans panic.
However, an air of optimism prevails among spinners and mills as was reflected by massive buying both at the decline and the rise to balance their inventories purchased above Rs6,000 per maund.
The following are some of the notable deals reported by the Karachi Brokers Forum on Tuesday:
SINDH TYPE: 2,000 bales each Khairpur and upper Sindh at Rs5,100 to 5,400 and 400 bales, Mirpurkhas at Rs3,700.
PUNJAB VARIETY: 400 bales, Bahawalnagar at Rs5,300, 400 bales, Hasilpur at Rs5,400 and 200 bales, each Fort Abbas, Jahania, at 5,400, 400 bales, Mian Channu and 200 bales, Multan at Rs5,450 and 5,475, 800 bales, Lodhran at Rs5,500, 400 bales, DG Khan at Rs5,500,1,000 bales, each Shujabad, Nurpur and Ahmedpur East at Rs5,500, and 2,000 bales, each Bahawalpur and Burewala at Rs5,500 to 5,600, 2,200 bales,1,000 bales and 2,000 bales, Rahimyar Khan, Sadiqabad, Khanewal at Rs5,600, 2,000 bales, Khanewal at Rs5,600 to 5,700, 3,000 bales, Rajanpur at 5,650 to 5,750, 600 and 800 bales, Tounsa Sharif and Shadan Lund at Rs5,700 and 400 bales, Fazilpur at Rs5,750.