KARACHI, March 11: Cotton market on Monday maintained a firm trend as spinners continued to build-up long positions amid rising prices and brisk trading.
For the second session in a row, big-lot business was recorded as leading spinners were not inclined to stay away and lifted all the lots offered for sales irrespective of higher asking prices.
Unlike the weekend session, most of the fine lots were traded at Rs1,750 per maund, higher by Rs50 and floor brokers claims the current price flare-up is expected to continue in the coming sessions.
Although stock position is fairly comfortable owing to higher arrival figures, the slight pick up in exports has triggered strong mill buying.
“There is a three-pronged attack on the unsold stock lying in the ginneries as spinners, exporters and the TCP are out to cover their positions fearing further increase in prices”, says a cotton broker.
He says some of the leading private sector exporters have secured a fair amount of firm orders from the foreign buyers and are in the market to cover their forward positions.
The current rise in world prices from 35 cents per lb to 37 cents per lb for the ruling New York May contract and perception of higher exports of textile in the backdrop of quota increases by the European Union have accelerated the pace of mill buying, he adds.
“Lint prices are expected to stabilize around Rs2,000 per maund”, market sources said basing their assessment on the supply and demand positions “after having failed to outwit TCP, spinners have again taken the floor and for good reasons too”.
There could be some rethinking on the current wave of panic mill buying in due course as the unsold lying with the ginners are still on the higher side around 1.6 million bales, which worried ginners as huge amounts are tied to them.
Ready offtake was, therefore, on the higher side though confined mostly to fine lots and as a result 10,000 bales, changed hands as under:
SINDH TYPE: 2,000 bales, Moro at Rs1,675, 400 bales, Panjmoro at Rs1,700, 2,600 bales, Mirpur Mathelo at Rs1,750, 1,000 bales, Rohri at Rs1,750, 1,000 bales, Salehpat at Rs1,750, and 600 bales, Khairpur at Rs1,750.
PUNJAB VARIETY: 3,000 bales, Feroza at Rs1,750 and 1,000 bales, Rahimyar Khan at Rs1,740.