KARACHI, Aug 19: Trading on the cotton market on Friday resumed on a steady note as prices of new crop were quoted higher by Rs25 to Rs50 per maund amid thin activity. Some of the deals for quality lots were finalized as higher as Rs2,300 per maund, the average selling rate being Rs2,275 against the previous Rs2,225 to Rs2,250, dealers said.
Although spinners and mills are selective buyers after having purchased about 0.9m bales from the TCP and 12m bales from the ginners as leading among them are inclined to check any further increase in prices and are mostly staying out, they said.
“Bulk of the support is reportedly originating from weaker links of leading spinner groups because their stock positions are not that ideal as they mostly sell their finished products in the local markets and to the ancillary industry,” they said.
According to daily ready off-take figures ginners were also not inclined to sell lint in haste and were steadily holding their stocks despite the fact that arrivals of phutti had considerably increased during the last couple of sessions.
“Picking operations of phutti in the lower Sindh cotton belt are in full swing and growers are not inclined to hold on their stocks fearing decline in prices”, brokers said.
They said that prices of phutti in the lower Sindh cotton belt were quoted between Rs1,050 to Rs1,100 per 40 kg and most of the growers preferred to sell it on the spot rates rather keeping it in the ginneries on an unfix basis.
The volatile performance of the New York cotton futures were sending bearish signals the world over and the local growers were well aware of the price manipulation any time, they added.
Official spot rates were again firmly held at the previous level of Rs2,225 per maund, although most of the deals in the ready section in the new crop were done well above them.
New York cotton futures on the other hand suffered fresh setback of 0.74 and 0.82 cents at 46.26 and 48.04 cents per lb for both the ruling October and the forward December contracts respectively.
Ready business was light totalling about 2,000 bales, the following being some of the notable deals: 200 bales, each Sanghar and Khipro at Rs2,275, 600 bales, Mirpurkhas at Rs2,250 to Rs2,275 and 400 bales, Shahdadpur at Rs2,275 to Rs2,300.