KARACHI, Nov 21: Trading on the cotton market on Monday resumed on a firm note as ginners held on to their positions anticipating further increase in prices “It appears to be the belated reaction to the perception of a short crop”, analysts said, adding “the rise and fall in the arrivals of phutti into the ginneries reflect that growers have in unison decided to get a fair price for the produce”.
A steep decline in the ready off-take showed that ginners also held on to their unsold positions anticipating further increase in prices if growers manage to hold on to their stocks for another week or so, they said.
Ginners were, therefore, obliged to raise their asking prices from the previous by Rs25 per maund but spinners failed to get enough supplies in the absence of sellers.
“The cotton trade is again heating up as supply and demand factors have taken over the local market”, says a broker “but despite a short crop, spinners are not worried over the developing situation and mostly played safe without fuelling a price flare-up”.
Official spot rates were revised upward by Rs25 per maund after having fallen by Rs70 during the previous weeks amid market talk of pressure on future supplies.
Most of the deals in the ready section were done well above the spot rates depending on the quality of lint involved but Sindh types were again neglected as spinners and mills seem to be interested in the Punjab variety for better quality reasons, brokers said.
According to official figures, private sector exporters have physically shipped 39,135 bales of cotton to various destinations against the total sales of 97,736 bales till Nov 11, 2005.
Meanwhile, spinners and mills have imported 0.192m bales of fine lint from various sources for blending purposes to produce higher counts of cotton yarn, official figures say.
Ready business was light as spinners were not inclined to chase higher prices and a total of 6,000 bales changed hands all from the Punjab cotton belt: 800 bales, Burewala at Rs2,425, 400 bales, each Jahania, Multan, Cinigoth and Rahimyar Khan also at this rate, 400 bales, Chichawatni at Rs2,400, 400 bales, Lodhran at Rs2,425 to Rs2,450, 600 bales, Hasilpur at Rs2,400 to Rs2,425, 600 bales, Jalalpur at Rs2,425 to Rs2,450, and 400 bales, Shabbirabad at Rs2,450.