KARACHI, Jan 12: Cotton market on Friday showed firm trend as ginners held on to their previous positions and did not lower their asking prices amid reports of pressure on future supplies.
Stray lots, however, did change hands on the higher side but below Rs2,600 per maund as some of the needy mills made modest covering purchases of fine lots from the southern Punjab cotton belt, brokers said.
Although ginners firmly holding on their unsold stocks of about 2 million bales anticipating fresh rise in prices in the coming weeks.
The activity, however, is expected to remain slow as spinners and mills are not inclined to go beyond their export parity levels, they added.
“All eyes are now focused on the official nod on import of lint to make up the short-fall,” ginners said, adding “the falling ready activity in the ready section is one of the chief reasons”.
Moreover, spinners were also awaiting improvements in the world textile prices in the new trading year, which could significantly enhance their bargain-capacity with their foreign trading partners.
Most of the leading spinners and mills managed to make forward deals at the higher rates as compared to previous quarter ended Dec 31, 2006, which is well reflected in higher shipments of textiles.
Market sources said phutti arrival figures for the fortnight ending on Jan 15, 2007 could have significant bearing on the future market trend. Both ginners and spinners are awaiting them.
As a result, official spot rates were again held unchanged at the previous level of Rs2,500 but in ready section most of the deals were done well above them.
New York cotton futures on the other hand resisted fresh fall and were quoted modestly higher by 0.11 and 0.3 cents at 54.04 and 54.78 cents per lb for both the ruling March and the distant May contracts respectively.
Ready off-take was light and was confined to fine lots from the southern Punjab ginneries as under: 1,000 bales, Rahimyar Khan, 800 bales, Bahawalpur and 600 bales, Ahmedpur East at Rs2575 and 600 bales, Sadiqabad at Rs2,565.