KARACHI, Nov 14: Cotton market on Wednesday shrugged off the last couple of sessions hesitancy as spinners resumed their covering operations after a technical breather.
Further cut in war risk charges by the shipping lines, strong dollar, and sharp increase in New York cotton futures were claimed to be some of the bullish factors luring spinners back in the market.
“It was the second busiest sessions during the current season when about 40,000 bales changed hands, the previous record being 0.1m bales”, brokers said.
Most of the deals in the Punjab variety were recorded around Rs.2,000.00 per maund as the resumption of buying by the leading groups witness ginners being in a bullish mood.
Ready rates, which have fallen to Rs.1,850.00 for the Punjab lint during the last couple of sessions after spinners and mills withdrew to the sidelines to outwit ginners, showed an impressive rise ranging from Rs.150.00 to 200.00 per maund just in one go. The interesting feature was that big-lot business was reported including a deal of 10,000 bales from Bahawalpur at Rs.1,975 to 2,000.00.
“The quality war among the spinners is still there, which in turn tilted the balance in favour of the ginners,” brokers say, adding owing to higher phutti prices ginners are showing a remarkable holding capacity.
Leading spinners groups having sound financial positions appear to be after each fine lot irrespective of the asking prices and that has caused the fresh price flare-up.
Reports coming from the upper Sindh and the southern Punjab cotton belts indicate that ginners are following the line of growers as far as the lint prices are concerned and could not lower them.
Most leading cotton brokers say the cotton market is in the grip of growers as they are not inclined to sell phutti in line with the international prices owing to higher production costs.
“After having sold phutti around Rs.1,000.00 during the last week’s massive mill buying including on unfixed basis, growers still entertain higher prices, although much has changed on the world markets”, says a leading ginner.
Meanwhile, reports coming from the major cotton growing areas reflects that the extent of damage to standing crop and lower per acre yield are not clear. The phutti arrival figures due to be released by the Pakistan Cotton Ginners Association (PCGA), for the fortnight ending Nov 15, are expected to set the future direction of the market.
Official spot rates were held unchanged at the last levels but most of the deals reported in the ready section were done well above them.
Ready offtake was brisk as till late in the evening about 40,000 bales changed hands following being some of the notable deals.
SINDH TYPE: 600 bales of Oderolal at Rs.1,700.00, 200 bales, Shahdadpur at Rs.1,700.00, 500 bales, Setharja at Rs.1,900.00, 500 bales, Mehrabpur at Rs.2,000.00, 500 bales, each Gothki and Dharki at Rs.2,000.00.
PUNJAB VARIETY: 1,000 bales of Mian Channu at Rs.1,850 to 1,900.00, 1,000 bales, Chichawatni at Rs.1,900.00, 1,000 bales, Yazman at Rs.1,975 to 2,000.00, 1,000 bales, Khanpur at Rs.1,950.00, 1,000 bales, Kalanhwala at Rs.2,000.00, 1,000 bales, Sadiqabad at Rs.2,000.00, 2,200 bales, Rajanpur at Rs.1,950 to 2,000.00, 5,000 bales, Ahmedpur East at Rs.1,975 to 2,000.00, 4,000 bales, Nurpur at Rs.2,000, 2,000 bales, Lodhran at Rs.2,000.00, 3,000 bales, Rahimyar Khan at Rs.1,975 to 2,000 and 10,000 bales of Bahawalpur at Rs.1,950 to 2,000.00.