KARACHI, Aug 24: Cotton market showed firm trend as ginners further raised their asking prices followed by reports of pest attack in some of the major cotton growing areas.
“Report that the target of 15m bales may not be attained owing to a number of adverse factors, appears to be the chief positive reason behind the market’s snap rally”, brokers said.
The notable feature was that trading was also resumed in central Punjab variety where picking operations of phutti had started a couple of weeks earlier.
The central and southern Punjab lint, which fetches better price as compared to its Sindh counterpart owing to varietal difference changed hands between Rs2,365 to Rs2,400 per maund depending on the quality factors, brokers said.
Short staple lint from the lower Sindh cotton belt was also traded at higher prices from the recent lower levels and most of the deals were done between Rs2,270 to Rs2,300, indicating fresh rise in the coming weeks, they said.
Another factor fuelling the price run-up was sharp rebound staged by the New York cotton futures on reports of higher world consumption.
Floor brokers said the sudden change in the market outlook showed that both the grower and the ginner were poised to benefit if prices rose further but spinners seemed to have peeped into the future supply and demand factors and were playing safe to contain any price flare-up.
Spinners were expected to go slow with a view to keep ginners at their toes all the time amid fears of building up unsold stocks and the possible negative impact on their liquidity and purchasing power, they said.
New York cotton futures were quoted further higher by 0.37 and 0.39 cents at 47.67 and 49.25 cents per lb for both the ruling October and forward December settlements respectively.
Local official spot rates rose by another Rs25 at Rs2,275 per maund, although some of the deals were done well above them.
Ready off-take was active amounting to 4,000 bales, the following being some of the notable deals.
SINDH TYPE: 200 bales, Khipro at Rs2,270, 600 bales, Sanghar at Rs2,270 to Rs2,275, 600 bales, Shahdadpur at Rs2,285 to RS2,290 and 800 bales, Tando Adam at Rs2,285 to Rs2,300.
PUNJAB VARIETY: 100 bales, Burewala at Rs2,365, 100 bales, Chistian at Rs2,370, 100 bales, D.G.Khan at Rs2,375 and 200 bales, Ghaziabad at Rs2,400.