KARACHI, Aug 18: Cotton market on Monday firmed up as ginners raised their asking prices after spinners tried to grab the floating stock from the lower Sindh ginneries.
There was, therefore, no trace of last couple of sessions falling prices as most of the deals were reported finalized at the ginners options. Most of the deals were done at Rs25 to Rs50 higher depending on the quality of lint as compared to the weekend rates.
Trading in the ready section was open with an increase of Rs25 against the weekend closing rates of Rs2,525, and as the mill demand picked up, prices rose further and the highest deal was reported at Rs2,575 per maund with 15 per cent sales tax.
Market sources said it is interesting to note that despite official claims of a bumper crop, although rains have damaged crop in the lower Sindh, spinners were not inclined to buy the idea and worked according to their own production perceptions.
Both spinners and ginners have their own crop monitoring teams, which carry out survey of the standing crop and ascertain the extent of pest attack if any in the major growing areas.
“Lint prices are expected to rise further, setting the base rate around Rs2,600, owing to supply gap,” floor brokers said adding “until ginning operations in the major growing areas are resumed, spinners may remain at the receiving end.”
The spinners are watching the developing situation on the supply front as leading among them who have enough stocks from the old crop to meet their nearby consumption are making guarded buying in apparent effort to contain prices within the current range.
But those who have exhausted their old crop stocks for various reasons including lower inventories are in the market in a big way and are inclined to lift the available lots even at the higher prices. Hence the prevailing increase.
In the mid of last week prices had eased by Rs50 to Rs75 per maund followed by reports of steady arrivals of phutti into the ginneries of the lower sindh and it was speculated that they might fall further but strong mill demand again pushed them higher.
Ready offtake was active as till late in the evening about 3,000 bales, all from the Sindh ginneries, changed hands. The following being some of the notable deals;
NEW CROP SINDH: 1,400 bales, Tando Adam at Rs2,550, 200 bales at Rs2,575, 200 bales, Mirpurkhas at Rs2,550, 200 bales, Khipro at Rs2,565, 100 bales, Sultanabad at Rs2,525, 200 bales, at Rs2,550, 100 bales, Sanghar at Rs2,560, and 500 bales, Shahdadpur at Rs2,550.