KARACHI, Sept 13: Easier conditions were again witnessed on the cotton market on Saturday where prices showed fresh modest fall as some of the ginners continued to unload their long positions at the current levels followed by reports of steady arrivals of phutti.
During the last couple of sessions lint prices had dropped by Rs200 per maund to Rs4,000 from the recent highs of Rs4,200 and brief surge to Rs4,300 per maund.
As a result, phutti prices also eased from the peak level of Rs2,100 per 40 kg to Rs1,750 to Rs1,900 per 40 kg depending on the quality, ginners said.
They said owing to pest attack the Punjab lint was being sold at a discount as compared to its Sindh counterpart, but there were buyers for both the types as spinners and mills use the both after mixing for the same count of cotton yarn.
“Private sector exporters who have been active buyers around Rs4,100 per maund kept to the sidelines after the current downward drift started in prices hoping further decline,” they added.
A leading cotton exporter said the recent sharp decline in the New York cotton futures, which generally form the base of any forward export contract, did not allow making fresh commitments.
The other factor which drove them out of the market at least for the near-term was that local prices were a bit higher than world ones and some of our traditional buyers had switched to other countries, they added.“The absence of China, one of the major cotton buyers from the world markets owing to export problems on their cotton yarn export front also keep the markets in turmoil and importers are in two mind how to react,” said a leading cotton exporter.
It was in this background that the official spot rates were further lowered by Rs25 per maund at Rs4,000.
The New York cotton futures on the other hand resisted fresh fall and were quoted higher by 0.63 and 0.66 cents per lb higher at 62.17 and 64.52 cents signalling that the worst may now be over.
Mill ready off-take fell to modest proportions at 10,000 bales, from 30,000 to 40,000 bales daily, as spinners awaiting further fall in prices.
The following are some of the deals, which gone through late on Saturday evening:
SINDH TYPE: 1,000 bales, Shahdadpur, 600 bales, Tando Adam and 800 bales, Nawabshah at Rs4,050, 400 bales, Sinjoro and 200 bales, Mirpurkhas at Rs4,025 and 400 bales, Sanghar at Rs4,040.
PUNJAB VARIETY: 1,800 bales, Pak Pattan, at Rs3,900 to Rs3,975, 1,200 bales, Khanewal at Rs4,030 to Rs4,050, 400 bales, each Chistian and Bahawalpur at Rs4,000, 400 bales, Mina Channu at Rs3,985 and 400 bales, Gojra at Rs4,025.