KARACHI, Feb 8: Brisk trading was again witnessed on the cotton market on Thursday as mills lifted all the lots offered for sale by the ginners.
According to local brokerage houses about 30,000 bales changed hands at rates linked to the quality premiums, the highest rate being Rs2,625 and the lowest Rs2,230 for inferior or low-mic lint.
The notable feature was that big-lot business for average quality lint was also witnessed as leading groups lifted a good number of lots of 2,000 to 3,700 bales from the southern Punjab ginneries above Rs2,600 per maund.
Floor brokers said Punjab ginners appear to be in a mood to clear the backlog of their unsold stocks as much of the activity remained confined to the central Punjab lint.
“The fear that prices may ease further from the current levels if the government allows the imports from India or other countries to make up the local crop shortfall,” they said.
The heating up of the market followed by sudden change in spinner buying strategy reflects that ginners may be at the receiving end in the sessions to come, they added.
Weaker links among ginners are said to be not inclined to hold on long positions any more and opted for unloading at the prevailing prices, which in turn could have negative impact on the fine lots, some others said.
There was no change in the official spot rates at Rs2,525 per maund.
New York cotton futures on the other hand suffered fresh fall of 0.67 and 0.61 cents at 53.00 and 53.72 cents per lb for both the ruling March and the distant May settlements respectively.
Mill ready off-take was on the higher side totalling about 30,000 bales, the following being some of the notable deals:
SINDH VARIETY: 2,000 bales, Gothki, Mirpur Mathelo and Daharki at Rs2,590, 400 bales, Hyderabad at Rs2,490, 400 bales, each Rasulabad and Hala at Rs2,450 and Rs2,500 respectively.
PUNJAB TYPE: 1,500 bales, Rahimyar Khan at Rs2,520, 2,000 bales, Bahawalpur at Rs2,585-2,625, 3,700 bales, Bagho Bahar at Rs2,625, 2,500 bales, Sardar Lund at Rs2,550, 2,000 bales, Lodhran at Rs2,550-2,560 and 1,400 bales, Shujabad at Rs2,565. There were several retail lots purchased by the ginners.