KARACHI, Sept 14: Cotton market on Saturday remained under pressure as prices tended further lower for both Punjab and Sindh varieties but luckily the barrier of Rs.1,900 per maund was not broken.
Punjab type was again sold at a discount as compared to its Sindh counterpart, what a leading broker Naseem Usman called, a quality problem of the lint in trade.
“The ideal micronaire of lint is 4.5”, he says adding “while in Sindh it has dropped to 4mic,in Punjab it is on the higher side at 5mic, both are below the specifications required by the spinners to produce a quality yarn or cloth.”
Micronaire reflects thickness of the staple and length of the fibre and its normal percentage is associated with a higher price for the lint.
Spinners say the Mic at this time of the season generally remains ideal, it is unusual that it drops or exceed the specified limit, which in turn amounts to inferior quality and lower prices.
While some lots in Sindh variety were traded as lower as Rs.1,900 per maund, Punjab type was traded between Rs.1,925 and 1,965 on the lower and higher side respectively because of Mic problems.
Although official sources are silent on the issue, the users of lint have lowered their bid prices according to the quality of lots in trades.
“Extremely hot weather or paucity of irrigation water at the proper stages could be one of the reasons behind the low-mic lint,” says a leading spinner and fears “an alarming situation be around on the cotton front as far as the price factor is concerned.”
The current hasty ginner selling, which has pushed prices down to the current level from the early week peak of Rs.2,025 per maund reflects this phenomenon, market sources said.
The other aiding bearish factor was said to be the persistent decline in New York cotton futures, which are heading to breach through the 40-cent barrier. The ruling October was further marked lower by 0.46 and the distant December by 0.32 cents per lb at 41.27 and 43.17 cents per lb respectively.
Local official spot rates, however, remained pegged at the overnight level in the line with fall in prices in physical trading.
Ready business was active as till late in the evening about 6,000 bales both from the Sindh and the Punjab ginneries changed hands as under:
SINDH VARIETY: 600 bales, Nawabshah at Rs.1,975, 500 bales,Tando Adam at 1,975, 200 bales at 1,950, 200 bales, Tando Allahyar at 1,950, 200 bales, Shahdadpur at 1,975, 100 bales, at 1,950 and 200 bales, Sultanabad at 1,900.
PUNJAB TYPE: 1,000 bales, Mian Channu at Rs.1,960, 400 bales at 1,965, 400 bales, Sahiwal at 1,960, 400 bales, Pakpattan at 1,960, 200 bales, Gojra at 1,925 and 400 bales, Chichawatni at 1,960.