KARACHI, Jan 15: Brisk trading was witnessed on the cotton market on Tuesday as spinners made an extensive buying at the prevailing rates after a relative lull during the last about two weeks.
About 25,000 bales changed hands, the highest rate being Rs1,750, which dealers said could be in line with the spinners export parity level for cotton yarn.
“The hectic mill buying reflects a perceptible change in their future perceptions about the cotton economy as well as cotton trade,” says a cotton broker, adding, “but the decisive factor could be a major breakthrough on the export front in the post-Afghan war scenario.”
The interesting feature was that bulk of the transacted business comprised big lots, reflecting in a way panic mill buying for not apparent bullish reasons.
But some cotton analysts believe some big changes on the export front, including a spate of fresh buystops may well be one of the reasons behind the return of spinners and mills to the market.
“The fact that spinners lifted all the lots offered by the ginners around or below Rs1,750 points to revival of mill demand and for good reasons,” they added.
Holding a large unsold stock of over 2 million bales, ginners welcomed the entry of spinners on the hopes that the current tempo of covering purchases will be maintained by the mills and spinners.
Exporters’ presence though on a modest scale for the inferior lots also encouraged ginners not to resort to panic selling as was speculated by spinners a couple of days back.
However, the TCP is staying on the sidelines, allowing the market forces a free hand to tilt the price balance in their respective favours.
Ready offtake touched the daily high mark of 25,000 bales, the following being some of the notable deals:
SINDH VARIETY: 1,000 bales of Moro at Rs1,650, 400 bales, Dadu at Rs1,650, 400 bales, Salhpat at Rs1,750, and 3,000 bales from upper Sindh at Rs1,750.
PUNJAB TYPE: 2,000 bales of Sadiqabad at Rs1,700 to Rs1,750, 3,000 bales, Rahimyar Khan at Rs1,700 to Rs1,750, 2,000 bales, Rajanpur at Rs1,650 to Rs1,725, 1,000 bales, D.G. Khan at Rs1,600, 1,600 bales, Ahmedpur East at Rs1,675 to Rs1,700, 2,000 bales, Bahawalpur at Rs1,675 to Rs1,700, 2,000 bales, Yazman at Rs1,675 to Rs1,725, 600 bales, Khanpur at Rs1,750.00, 200 bales, Bagho Bahar at Rs1,750, 400 bales, Sahiwal at Rs1,250, 200 bales, Gaggon at Rs1,250 and 200 bales of Burewala at Rs1,300.