KARACHI, Sept 5: Lint prices on the cotton market on Friday eased further as Sindh ginners were not inclined to hold long positions owing to larger arrivals of phutti.
Most of the deals were reported around Rs2,250 on the lower side and Rs2,375 to Rs2,400 on the higher side depending on the quality of lint in trade, dealers said.
Although some of the leading spinners made cautious covering purchases anticipating further decline in prices after the picking operations resume in the upper Sindh cotton belt, others remained active buyers, around Rs2,250 and, according to them, a substantial business was transacted around these levels.
“Prices may rebound from the current lows during the next couple of days after the confusion over the crop ideas is over and we are not inclined to take risk against our forward sales of cotton yarn,” some spinners say.
According to cotton analysts prices of lint have fallen in line with the yarn export parity rates and leading spinners have made “secret deals with some of the Sindh ginners for large quantity on forward basis details of which are not immediately known.
They said no one could deny the fact that both spinners and mills are fully booked for the half year ending December 31, 2003 and may not take risk of an expected increase in prices in due course.
What seems to have triggered hasty selling from the ginners during the last two sessions, which have pushed prices down from the peak level of Rs2,550 to Rs2,225 per maund is claimed to be spot fixing of prices by the growers, they said.
Unlike the previous season most of the growers including progressive farmers are selling phutti at the spot rates on daily basis and as ginners are not inclined to take risk make ready selling of lint after adding their overheads.
But leading brokers said prices may not fall further from the current levels as leading ginners will try to hold on to their stocks rather than selling in panic below the prevailing rates because of higher world prices.
Official spot rates were lowered by Rs80 per maund in line with the ready rates but they are still higher as most of the deals in the ready section were done well below them.
New York cotton futures on the other hand rose further by 0.33 and 0.26 cents per lb at 57.92 and 59.78 cents per lb for both the ruling October and the distant December settlements respectively.
Ready offtake was large totalling about 7,000 bales but both ginners and spinners remained tight-lipped on details of the Friday’s tally. However, most of the deals were reported below Rs2,400 per maund.
But there was a relative quiet on the Punjab lint front as ginners held on to their stocks rather than selling at the falling prices.