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KARACHI: Normal trading activity returned to the cotton market on Thursday after Ashura holidays as buyers covered their forward positions against forward sales to new year commitments.
About 25,000 bales, including some big lots, changed hands at rates ranging from Rs5,050 to 5,400 per maund depending on the quality of lint in trade, although fine types from the central and southern Punjab cotton belts were traded at an average rate of Rs5,300 per maund, dealers said.They said spinners and mills resumed their normal covering operations, although the main buying thrust was on fine lots from the Punjab cotton belt and big lot-business reflects that the scramble to grab the floating stock of quality lots could push prices further higher.
Analysts said the local market is behaving in line with its own supply and demand fundamentals and appears to be in no mood to be influenced by the New York cotton futures, which are unsettled for the last couple of weeks on various reasons.
“But it is satisfying to the note that the current rates, which appear to have stabilised around the ruling prices suit to both the buyers and the sellers according to their parity levels, the big ready off-take points to this fact,” they said.Meanwhile, arrival of phutti into ginneries, notably of the Punjab, is steadily rising, which in turn would increase the ready supply in the coming weeks.
New York cotton futures remained under pressure and were quoted lower by 1.71 and 1.50 cents per lb at 91.60 and 92.31 respectively.But on the other hand, official spot rates were again held unchanged at the overnight level of Rs5, 300, although some of the deals were done well above them.
The following are some of the notable deals reported by the Karachi Brokers Forum on Thursday:
SINDH TYPE: 2,000 bales, upper Sindh at Rs5,150 to 5,200, 1,000 bales, Khairpur at 4,750, 600 bales, Mirpurkhas (lower quality) at 4,000 and 400 bales, Sultanabad at 3,850.
PUNJAB VARIETY: 1,000 bales, Haroonabad at 5,050 to 51, 00, 400 bales, Hasilpur at 5,100, 1,000 bales, Bahawalpur at 5,150, 5,190, 1,000 bales, Ahmedpur East at 5,150 to 5,300, 600 bales, Burewala at 5,200 to 5,250,400 bales, Vehari at 5,200, 2,000 Khanewal at 5,200 to 5,250, 1,200, 1,000 each and 400 Layyah, Rahimyar Khan, DG Khan, and Sadiqabad at 5,300, 600 and 1,200 bales, Alipur and Rajanpur at 5,400.
