KARACHI, Dec 12: Cotton market witnessed active trading on Wednesday as spinners and mills covered position against forward sales for the quarter ending on March 31, next.
This resulted in ginners raising the asking price by Rs50 after selling their stocks down by Rs150 per maund in the last couple of sessions, said floor brokers.
While the average price at which about 20,000 bales changed hand was Rs3,050 per maund, while some fine types from southern Punjab were sold as high as Rs3,125, they added.
“Erratic price movements witnessed on cotton market during the last couple of weeks apparently reflect a battle of wits between ginners and spinners to outwit each other on price front,” said a cotton analyst.
But supply and demand factors were expected to prevail in the final stage and a terribly short crop could prove a deciding factor, he added.
“Higher world prices, well above 60 cents per lb may have a positive impact on local prices as expensive import will divert spinners and mills to stay on local market,” said some others.
“Cotton trade is poised to enter into a decisive phase during the first week of next year and short supply appears trendsetter”, they said.
It was perhaps because of the perception spinners and mills re-entered into the market in a weaker way despite delivery problems and higher freight rates, they added.
Official spot rates were revised upward by Rs50 at Rs3,000 per maund for average quality but fine lots were traded much higher.
New York cotton futures on the other hand suffered fall of 0.57 and 0.39 cents per lb ruling March and distant May contracts at 64.13 and 65.92, respectively.
The following are some notable deals gone through in the ready section late in the evening:
SINDH TYPE: Around 1,000 bales of Shahdadpur and 600 bales of Dadu were traded at Rs3,000 and 200 bales of inferior quality at 2,925.
PUNJAB VARIETY: About 1,000 bales changed hands each D.G. Khan, Lodhran at Rs3,050; 400 bales each Garma Raja and Mailsi at 2,975; 400 bales, Hasilpur at 3,000,1; 600 bales Jalalpur at 3,050 to 3,100; 1,400 bales Shadan Lund at 3,075; 1,000 bales Fazalpur; 800 bales each Khanewal, Khanpur; and 400 bales each Noorpur, Shujabad, Ahmedpur East at Rs3,100; 2,000 bales Rajanpur at 3,070 to 3,100; and 800 bales Sadiqabad at 3,100 to 3,125.