KARACHI, June 19: Quieter conditions prevailed on the cotton market on Tuesday as spinners remained conspicuous by their absence apparently probing the Indian markets for early import of long staple lint from there.
The official notification allowing import of lint from India and some central Asian states through overland route seems to have buoyed spinners and mills, notably those who are far short of their annual consumption needs, floor brokers said.
“Most of them are sending S.O.S to their agents in Dubai and India to arrange large consignments at a competitive rate for immediate deliveries,” said a leading broker adding ”the next couple of weeks will show how many lots have been booked and at what rate.”
However, ginners are least worried over the euphoria among the spinners and mills as they know that meager unsold stocks lying in their godowns may not be a problem to sell them at a fair price.
“The Indian lint may not be that cheaper in the backdrop of recent steep rise in the New York cotton futures,” said a ginner adding “there could be a higher saving on the freight account only, which can lure many spinners to go for Indian cotton.”
According to textile sources, the industry will need another about two to three million bales to make up for the local crop shortfall and to see the current season through.
The situation on the import front from India will take a couple of weeks more as talks on selling rates may drag for many days despite the supply panic among the locals spinners and mills as no one will like to go beyond his export parity level, market sources said.
After sustained rise during the last couple of sessions, the New York cotton futures on Tuesday fell by 0.17 and 0.23 cents per lb at 54.75 and 57.67 cent for both the ruling July and the new crop October settlements, respectively.
Local official spot rates on the other hand remained pegged at the last level of Rs2,600 per maund.
Ready off-take was light totaling 1,000 bales as under: 200 bales, new crop, Sultanabad at Rs2.525 for August 15 delivery and 400 bales, current crop exporter to mill at Rs2,600 per maund.