KARACHI, Nov 29: Steady conditions prevailed on the cotton market on Thursday as spinners remained active at the current levels and again lifted all the lots offered for sale by the ginners.
Bulk of the business was finalised at Rs3,075 on the lower side and 3,200 per maund, but average rate was calculated at Rs3,150, notably for the Punjab lint.
However, unlike the previous couple of sessions, mill ready off-take was on the lower side as ginners held back their stocks hoping an increase in prices in sympathy with the rebound staged by New York cotton Future, floor brokers said.
After having fallen sharply lower during the last couple of sessions, New York futures recovered from the recent lows as both the contracts, the ruling December and the distant March were quoted higher by 1.56 and 1.53 cents per lb at 59.93 and 65.93, respectively.
But the future price outlook appears to be bullish based on the rate of forward March and May contracts as by that time lower world production and higher consumption will be at work, market sources said.
It was perhaps because of developing situation on the world cotton front, which forced some of the leading ginners to play safe and not indulge in hasty selling for the next about a week, they said.
But some others said the future price outlook will be largely set at which rate growers will sell phutti to the ginners after about week’s suspension, they said.
However, one thing appears certain that growers will prefer to hold on to their unsold stocks of phutti rather than selling at the lower rates as they are well aware of the crop position owing to damage in the Punjab cotton belt during mid-season pest attack, they added.
Official spot rates were again held unchanged at the previous level of Rs3,075 per maund for an average quality lint.
Mill ready off-take was relatively slow as till late in the evening about 15,000 bales changed hands, the following being some of the notable deals:
SINDH TYPE: 1,800 bales, Shahdadpur and 400 bales, Sanghar at Rs3,075, 400 bales, Khipro at 3,100 and 1,000 bales, upper Sindh at 3,175.
PUNJAB VARIETY: 1,000 bales, Liaquatpur and Rajanpur at Rs3,160 to 3,175, 1,000 bales, Khanewal, 200 bales, Layyah, 600 bales, Rahimyar Khan, at 3,175, 1,000 bales, D.G. Khan, 400 bales, each, Alipur, Burewala, Muhammadpur Dewan, Shujaabad, Sardar Lund, Fort Abbas, and 600 bales, Haroonabad at 3,150.