KARACHI, Oct 15: Cotton market on Tuesday showed firm trend as reports of slow arrivals of phutti into the southern Punjab ginneries did not allow spinners to leave the arena fearing a further pressure on ready supplies.
Floor brokers said reports reaching here from the cotton growing areas indicate that picking operations there are still to get normal as the winners in the election are still celebrating their electoral victories in different ways.
Normal activity in the fields is expected to take a couple of more days before the pickers complete their first picking in the southern Punjab cotton belt, which has now assumed the role of one of the major producers of cotton, they added.
The interesting feature is that the mill ready offtake remained on the higher side for the second post-election session as the current rates appear to be in line with export parity level of the textile sector.
For the first time during the post-election sessions a major shift in mills buying was noted as leading among them are willing to pay a bit more for quality lots, notably K-68 variety from the upper Sindh ginneries.
Unlike the similar variety from the Punjab cotton belt, which is selling between Rs1,990 to Rs2,000 per maund, most of the deals in upper Sindh fine type were finalized between Rs2,025 to Rs2,035 per maund because of its better quality, dealers said.
Most of the ginneries in the upper Sindh cotton belt have resumed processing operations a couple of days back and the future price outlook will be determined by the demand and supply factors.
Official spot rates were further revised upward by Rs10 per maund to Rs1,990, although in physical trading each lot was sold according to quality.
New York cotton future showed fresh fractional decline of 0.8 and 0.28 cents per lb at 42.76 and 45.22 cents for both the ruling December and the distant March settlements respectively.
Ready business was maintained on the higher side spinners and mills were not inclined to take even a technical breather and lifted all the lots offered for sale by the ginners.
The following are some of the deals, which gone through late on Tuesday evening:
SINDH VARIETY: 400 bales, Mandodaro at Rs2,025, 200 bales, Gambat and 400 bales Nawabshah also at Rs2,025 and 400 bales, Kumb at Rs2,035, 200 bales, Sanhar at Rs1,975, 200 bales, Shahdadpur at Rs1,990, 200 bales, at Rs1,975.
PUNJAB TYPE: 200 bales, Jalalpur at Rs2,000, 600 bales, Rajanpur at Rs2,000, 200 bales, Hasilpur at Rs1,985, 200 bales, 200 bales, Kabirwala at Rs2,000, 400 bales, Fazalpur at Rs2,000, 800 bales, Muridwala at Rs1,990, 1,200 bales various stations between Rs1,990 to Rs2,000, 200 bales, Khanewal at Rs1,990, 200 bales, Pirmahal at Rs1,990 to Rs2,000, 800 bales, Gijra at Rs1,990 to Rs2,000, 200 bales, Ludden at Rs2,000, 400 bales, Burewala at Rs1,985, 200 bales, Khror Pacca at Rs2,000 and 200 bales, Multan at Rs2,000.