KARACHI, Oct 12: Trading on the cotton market on Thursday resumed on a brisk note as there was no let-up in mill buying at the prevailing prices, although fine lots were sold at a premium.
Both spinners and mills appear to be in a bit haste and are not inclined to take a technical breather to have an overview of their inventories and continued to lift all the lots offered for sales by the ginners around Rs2,450 per maund, dealers said.However, leading ginners are worried over the official decision to allow import of more synthetic and polyester fibre for the textile industry to produce blended cloth and yarn for the export markets.
The current fall in lint prices was attributed to this reports as it will limit the use of lint cotton and that could lead to fresh fall in prices, market sources said.
For the first time after several seasons, the trading on the cotton market is terribly smooth without any default in payments by the spinners and delivery schedules the ginners, they said.
The most important thing is that the mills buying is well above the normal tally during this time of the season, which indicates that spinners are in a bit haste to cover their forward sales of both yarn and cloth, market sources said.
They said the current mill buying indicated that export sales of the textile industry are smooth despite conflicting reports about the falling prices on the international markets.
Official spot rates were held unchanged at the last level for the third session in a row but in the ready section most of the deals were done well above them.
New York cotton futures on the other remained under pressure on falling demand and were quoted further lower by 0.32 and 0.50 cents per lb for the ruling December and the distant March contracts at 48.38 and 51.86, respectively.
Ready business was fairly large totalling about 20,000 bales both from the Sindh and the Punjab cotton belts, the following being some of the notable deals:
SINDH VARIETY: 1,000 bales, each Sanghar and Tando Ghulam Muhammad at Rs2,375 to Rs2,400; 1,000 bales, each Mirpurkhas and Nawabshah at Rs2,390 to Rs2,400; 1,000 bales, Shahdadpur at Rs2,400 to Rs2,425; 1,000 bales, Hyderabad at Rs2,400; bales each Dadu and Hala at Rs2,400; 200 bales, Bandhi at Rs2,380; and 200 bales, Daulatpur at Rs2,425.
PUNJAB TYPE: 2,000 bales of Khanewal at Rs2,486 to Rs2,500; 600 bales, Rajanpur, 200 bales, Fazalpur, 200 bales, Kabirwala, and 400 bales, Multan, at Rs2,475; 1,000 bales, Haroonabad, 400 bales, each Tandila and Jahania, 200 bales, Gojra, 400 bales, Sahiwal and 200 bales, Pir Mahal at Rs2,450; 200 bales, Chichawatni at Rs2,485; 400 bales, Hasilpur at Rs2,470 to Rs2,475; 200 bales, Jhang at Rs2,465; 500 bales, Burewala at Rs2,465; and 1,000 bales, Bahawalpur at Rs2,450 to Rs2,475.