KARACHI, Sept 6: After having risen steadily for the last couple of sessions, cotton prices on Wednesday eased by Rs25 to Rs50 per maund in physical trading on selling triggered by reports of steady arrivals of phutti into the central Punjab ginneries. But official spot rates were revised upward by Rs50 per maund in line with Tuesday’s increase in prices in the ready section.
Much of the activity remained confined to central and lower Sindh lint around the previous levels, but Punjab ginners held on to the unsold stocks after some of the ginners lowered their selling prices by Rs25 per maund, brokers said.
Lint prices hit the high mark of Rs2,750 so far and there were fears among the spinners it would be pretty difficult to contain them if the speculation about the size of the crop continues, they said.
“Fairly steady increase in the arrivals of phutti, notably in the central Punjab cotton belt, has sent bearish signals among the ginners amid fears that the crop may not be that short as being speculated,” some cotton analysts said.
Although it is too early to speculate about the possible crop shortfall unless the Pakistan Cotton Ginners Association (PCGA) releases arrival figures of phutti for the fortnight ending Sept 15, 2006.
Spinners and mills were active buyers at the falling prices but there were not many matching selling offers by the ginners, although focus of buying shifted to Sindh lint.Official spot rates were raised by Rs50 per maund at Rs2,575 per maund but in the ready business Sindh lint was traded lower.
New York cotton futures eased by 0.41 and 0.39 cents per lb at 51.65 and 53.51 cents for both the ruling October and the distant December settlements respectively.
Ready off-take fell to about 8,000 bales, the following being some of the notable deals.
SINDH VARIETY: 1,800 bales, Mirpurkhas at Rs2,500
to Rs2,575, 1,500 bales, Shahdadpur at Rs2,575 to Rs2,625, 1,200 bales, Sanghar at Rs2,550 to Rs2,620, 900 bales, Sultanabad at Rs2,525 to Rs2,550 and 200 bales, Tando Adam at Rs2,585.
PUNJAB TYPE: 200 bales, each Chichawatni and Pir Mahal at Rs2,700.