KARACHI, Oct 1: Cotton market finished the weekend session on a steady note as mill demand remained fairly active at the prevailing prices and spinners were not inclined to take even a technical breather. The future direction of the market is expected to be guided by the size of arrival figures of phutti due during the next couple of sessions for the fortnight ended Sept 30, 2005, market sources said. Higher or lower figures could influence lint prices either-way, they added.
In physical activity fine varieties both from the central Sindh and Punjab were traded higher by another Rs25 per maund as leading spinners group were out to grab the floating stock of quality lots before the TCP re-entry as a second buyer, says a leading spinner.
Trading was, therefore, fairly brisk as price ideas of both sellers and buyers found a meeting ground as was reflected by larger ready mill off-take, brokers said. The increase in local prices of selected lots was in contrast of the New York cotton futures, which came in for active profit-selling and reacted from the early weeks highs caused by fear of crop shortages in the US, they said.
Some of the deals in selected lots were finalized as higher as Rs2,225 and Rs2,250 per maund both in Sindh and Punjab varieties, which reflected tendency of a rising market irrespective of the international price outlook.
“The market is guided by the local supply and demand factors based on mill export business”, ginners said “but the stepped up mill demand shows sailing on the export front are fairly encouraging”.
After having purchased about 12m bales of the previous crop and 1m bales from the TCP during the last couple of months spinners are still active buyers at the current levels apparently to cover their forward sales of cotton yarn and finished goods, they said.
Moreover, there is no complaint from the ancillary industry about the prevailing prices, which shows the prices are in line with the export parity level of finished textiles, some others said.
New York cotton futures eased from the recent highs and were quoted lower by 1.60 and 1.30 cents for both the ruling October and the distant December contracts at 51.50 and 53.11 cents per lb, respectively.
Local official spot rates on the other hand were held unchanged at the last levels in line with physical trading.
Ready business was active totalling 10,000 bales as under:
SINDH TYPE: 600 bales, Nawabshah, and 400 bales, Sakrand at Rs2,200 to Rs2,225, 1,800 bales, Shahdadpur at Rs2,200 to Rs2,215, 1,000 bales, Sanghar at Rs2,175 to Rs2,190, 1,000 bales, Tando Adam at Rs2,185 to Rs2,210, 200 bales, Khipro at Rs2,180, 200 bales, and Tando Adam at Rs2,175.
PUNJAB VARIETY: 1,600 bales, Vehari at Rs2,200 to Rs2,240, 600 bales, Khanewal at Rs2,225 to Rs2,250, 400 bales, Vehari at Rs2,200 to Rs2,240, 400 bales, Lodharan at Rs2,200 to Rs2,210, 200 bales, Chichawatni at Rs2,225, 200 bales, Mailsi at Rs2,210, 200 bales, Mamon Kanjan at Rs2,225, 400 bales, D.G.Khan at Rs2,200, 800 bales, Burewala at Rs2,215, 200 bales, each Arifwala and Hasilpur and 400 bales, Haroonabad at Rs2,200, 1,200 bales, Jahania at Rs2,225 to Rs2,250, and 200 bales, Ghaziabad at Rs2,240.