KARACHI, March 2: Active trading was witnessed on the cotton market as spinners and mills resumed their normal covering operations amid fears of fresh increase in prices.
About 20,000 bales changed hands but selling prices showed a difference of over Rs200 per maund depending on the quality of lint in trade, brokers said.
Inferior lots were traded around Rs2,400, while fine ones were sold around Rs2,605 per maund, about Rs20 down from the recent peak level at which some of the deals were finalised a couple of sessions earlier.
Floor brokers said the fall in prices of fine types, both from the upper Sindh and southern Punjab ginneries reflects that leading ginners, who are holding on bulk of the unsold stock, are inclined to shed an extra weight.
“Ginners perceptions of an imminent price flare-up caused by the lower final crop figures seem to be progressively fading as their weaker links have lowered their asking prices to get out of the market, they said.
The final crop figure due during the next couple of sessions may not cause any major change in the prevailing prices as both the sellers and the buyers have already a fair idea of the total, which could hardly touch the revised figure of 12m bales plus, they added.
Official spot rates were, however, quoted unchanged but in physical trading most of the deals were done on the lower side, signaling that spinners outwitted the ginners on the price front.
New York cotton futures on the other hand showed a modest rise of 0.25 cents for the maturing March contract, while May settlement posted a fractional fall of 0.12 cents at 55.80 and 53.70 cents per lb for both the contracts, respectively.
Ready off-take was fairly brisk as leading mills and spinners covered their forward positions at the prevailing rates. The following are some of the notable deals:
SINDH TYPE: 1,150 bales, Ranipur at Rs2,500, 1,000 bales, Nawabshah at Rs2,450, 1,500 bales, Shahdadpur (B.T) at Rs2,590, 541 bales at Rs2,400, 300 bales, Sanghar at Rs2,490 and 200 bales,(B.T) Shahpur Chakkar at Rs2,575.
PUNJAB VARIETY: 4,000 bales, Khanewal and 1,300 bales, Rahimyar Khan at Rs2,605, 600 bales, Rajanpur at Rs2,570, 200 bales, Kheror Pacca at Rs2,550, 400 bales, Taunsa Sharif at Rs2,450 and 1,000 bales, Jalalpur at Rs2,550.