KARACHI, March 19: Cotton market on Saturday maintained a bullish outlook as lower than market expectations phutti arrival figures allowed ginners to raise their asking prices by Rs25 per maund. “Ginners appear to be now in a commanding position”, a broker said while commenting on the demand and supply figures “prices are sure to rise further higher as the price setting mechanism has passed into their hands”. However, one thing is pretty clear that it will be easy for the ginners to adjust their overdraft limits well before the deadline of June as it is not that difficult to sell 0.8m bales in a month, they said. But there could be some supply problems for the mills and spinners as world prices may rise further after they tried to supplement their supplies as it has been experienced early this month. Out of the total production of 14.312m bales, according to the latest official arrival figures, spinners and mills have so far purchased 11.455m bales, TCP 1.615m bales (official figure 2.5m bales, the balance lying in the ginneries) and private sector exporters 0.533m bales. Cotton analysts said if the TCP did not lift the balance of its purchases of about 0.9m bales and negotiate selling prices with the spinners and mills, the pressure on supplies will ease and spinners and mills will get a major relief.
On an average, TCP has procured fine lint at Rs2,159 per 40 kg and now spinners are willing buyers around Rs2,400 per maund from the open market and the TCP could oblige them with a fair profit margin, they said.
Meanwhile, according to official figures, private sector exporters have registered export deals with foreign buyer totalling 0.661m bales, up to March 7, shipments against which are steadily being made.
Official spot rates were quoted higher by Rs25, while on the other hand New York cotton futures resisted fresh sharp decline on speculative support at the lower levels.
The ruling May was quoted lower by 0.39 cents per lb, while forward July managed to finish unchanged at 52.50 cents per lb.
Ready off-take was light as spinners and mills were after each premium lot but were not inclined to go beyond their parity rates of Rs2,400 per maund on the higher side.
The following two deals went through on Saturday: 4,000 bales, Rahimyar Khan at Rs2,325 to Rs2,350 and 1,000 bales, upper Sindh at Rs2,350 to Rs2,400.