KARACHI, Sept 7: Cotton market on Thursday consolidated its overnight gains on active mill support at the prevailing prices, which seemed to have assumed the role of a benchmark suited both the buyers and the sellers, brokers said.
But they said the market was being guided by the growers who were not inclined to sell phutti below their parity levels after having adding higher input costs to existing prices.
“Unlike the previous season, ginners are already lost their price manoeuvring option and are playing the game of the big growers,” cotton analysts said.
Growers are said to be sellers at any rate above Rs1,200 per 40 kg and hold back their stocks if the offer is below their asking prices and that factor perhaps caused the current price flare-up, they said.
Some of the leading growers both in the central Sindh and Punjab cotton belts are now eyeing price level of Rs1,500 per 40-kg for phutti in the backdrop of a crop shortfall, they said.
A couple of years back when the country passed through another lean crop season, phutti prices had touched the all-time peak level of Rs1,700 and lint at Rs3,600 per maund and supply gaps were bridged through imports, says a leading broker.
The crop is short during the current season but not that short and is expected to meet bulk of the local demand, he said.
Official spot rates were, therefore, firmly held at the last level of Rs2,575 per maund, while in the ready section prices were quoted much higher at which deals were finalised.
New York cotton futures on the other hand remained under pressure and fell further by 0.21 and 0.09 cents per lb at 51.44 and 53.42 cents for both the ruling October and the distant December contracts respectively.
Ready off-take was active totalling about 10,000 bales as under.
SINDH VARIETY: 600 bales, Hala at Rs2,500 to Rs2,585, 400 bales, Hyderabad at Rs2,575, 400 bales, Sultanabad at Rs2,540 to Rs2,550, 1,000 bales, Shahdadpur at Rs2,575 to Rs2,600, 400 bales, Mirpurkhas at Rs2,535 to Rs2,550, 200 bales, Sanghar at Rs2,575, 200 bales Shahpur Chakkar at Rs2,575.
PUNJAB TYPE: 200 bales each, Haroonabad, Chichawatni, Sahiwal, Burewala and 400 bales, Sahiwal at Rs2,700 and 200 bales, Mamon Kanjan at Rs2,715.