KARACHI, Nov 8: Physical business on the cotton market on Tuesday picked up as pent-up mill demand owing to Eid holidays figured prominently mostly on the Punjab variety.
More than 15,000 bales were sold at an average rate of Rs2,400 per maund for nearby delivery, as spinners and mills tried to bridge the supply gap caused by the Eid holidays.
While the official spot rates for an average lint remained pegged at the previous level of Rs2,350 per maund in the ready section, ginners raised their asking prices by Rs25 to Rs50 per maund depending on the quality of lint.
Floor brokers said Sindh types, both from central and upper Sindh ginneries, were neglected as the spinners tried to grab the floating stock of fine variety from Punjab at the current levels.
The general perception is that the market will heat up after the arrival figures for the fortnight ending Nov 15 are released by the Pakistan Cotton Ginners Association (PCGA) on Nov 17 or 18, they said.
They apparently based their assessment on conflicting figures about the size of crop and its likely positive impact on the prevailing prices, they added.
“Another contributory positive factor could be reports of a short world crop as compared to global consumption, which in turn could benefit both the ginners and growers,” cotton analysts said.
They said both the spinners and mills are fully booked for the next quarter ending Dec 31, and leading among them beyond it and no one among them would like to stay on the sidelines and will remain active buyer irrespective of the price tag, they added.
Official spot rates were firmly held at the last close but on the other hand New York cotton futures turned mixed amid slow trading. While the ruling December delivery ended lower by 0.18 cents at 51.26, the distant March was traded fractionally higher at 54.29 cents per lb.
Ready offtake was on the higher side as over 15,000 bales changed hands, all from the Punjab ginneries, the following being some of the notable deals: 1,000 bales, each Alipur, Uch Sharif, Chani Goth, Ahmedpur East, Jalalpur and 1,200 bales, Bahawalpur at Rs2,375 to Rs2,400; 400 bales, each Faqirwali, Tranda, 600 bales, Jahania, 800 bales, Shujabad, 400 bales, Khanewal, Sadiqabad, Basti Malook, 600 bales, Hasilpur and 400 bales, Muridwala also at Rs2,400; and 1,500 bales, Rajanpur at Rs2,375 to Rs2,400.