KARACHI, Oct 17: The cotton market on Monday maintained a firm outlook as official spot rates were firmly held unchanged at the weekend levels amid active trading. But in physical trading most of the deals were done well above them both in Punjab and Sindh cotton belts as spinners and mills remained active buyers at around Rs2,400 per maund.
“The future direction of the market is still unclear,” says a leading broker. “Everybody is awaiting the arrival figure of phutti for the fortnight ended Oct 15 before opting for the annual strategy.”
A loud whispering about a short or a normal crop keeps the market unsettled for the last couple of sessions, they said, adding that the Oct 15 figures would provide a peep into the total crop.
But heavy daily intake of the mills and spinners shows that both have a fair idea of the total crop and the current selling rates are in line with their export parity levels.
“Without overstretching themselves, the mills are judiciously setting the market trend despite the fact that at times growers upset their planning after holding on to their phutti stocks,” ginners said.
However, no one is the loser in the current bargain as the growers are getting a fair deal at Rs1,100 to Rs1,150 per 40 kg for phutti and so are the spinners at around Rs2,350, and the ginners are happy with their conversion charges plus price differentials.
According to market sources, local yarn is still weak and did not respond positively to the international developments, including higher cotton prices on the world markets, but the spinners are keeping the wheels of ancillary industry moving after having provided cheaper raw materials.
Official spot rates consolidated the weekend gains and were firmly held at the last level of Rs3,250 per maund.
About 10,000 bales, changed hands in bulk in the Punjab variety in the ready section, the following being some of the notable deals:
SINDH VARIETY: 700 bales, Mirpurkhas at Rs2,300 to Rs2,325; 800 bales, Nawabshah at Rs2,375 to Rs2,400; 200 bales each, Daur and Jam Goth at Rs2,400; and 200 bales, Sanghar at Rs2,340.
PUNJAB TYPE: 200 bales, Khanewal at Rs2,450; 600 bales, 400 bales, Bahawalpur, 200 bales each Hasilpur and Ghaziabad at Rs2,425; 1,000 bales, each Jahania and Rajanpur, 200 bales, BAhawalnagar, 400 bales, Mianwali, 200 bales, Mamon Kanjan, 400 bales, Vehari, 400 bales, Alipur, 200 bales each Basti Malook and Tiba Sultanpur at Rs2,400; 400 bales, Gojra at Rs2,400 to Rs2,425; and 600 bales, Uch Sharif at Rs2,400 to Rs2,440.