KARACHI, Nov 3: Cotton market on Thursday resisted fresh fall as ginners held on to their long positions and did not lower their asking prices unlike the previous couple of sessions.
Spinners and mills also curtailed their daily intake owing to a long holiday weekend and delivery problems but their absence did not affect the ginner holding position, some floor brokers said.
However, some of the inferior types from the lower Sindh were traded below the barrier of Rs4,000 but fine varieties from the Punjab belt were sold at an average rate of Rs5,400 per maund, they added.
Cotton analysts said although there was no basic change in the supply and demand factors, the current slowdown in mill demand was caused by the coming Eid holidays and hopes of fresh fall in prices during the post-Eid holiday trading.
“Production miracle caused by the sowing of B.T. type of cottonseed during the current season upset the most authentic production figures despite crop damages in the lower Sindh cotton belt because of rain and floods”, they said, and added: “The continued fall in lint and phutti prices is well-reflected in this phenomenon”.
New York cotton futures, on the other hand, suffered fresh fall of 1.20 and 0.95 cents per lb at 98.34 and 97.60 cents for both the ruling December and the forward March contracts but did not have negative impact on the local lint prices.
Official spot rates, on the other hand, were firmly held unchanged at the overnight level of Rs5,450 per maund for an average type of lint.
The following are some of the deals reported by the Karachi Brokers Forum on Thursday:
SINDH TYPE: 800 bales, Mirpurkhas at Rs3,800 to 4,000, 400 bales, each Kotri and Shahdadpur at Rs4,600, 400 bales, Sakrand at Rs4,650, 1,000 bales, Khairpur at Rs5,100 to 5,300, 1,000 bales upper Sindh at Rs5,300.
PUNJAB VARIETY: 200 bales, Dunyiapur at Rs5,175,600 bales, Ahmedpur East at Rs5,350 to 5,400, 200 bales, Shujaabad at Rs5,350, 600 bales, Khanpur at Rs5,400,1,000 bales, Bahawalpur and 800 bales each, Kabirwala and Burewala at Rs5,400 to 5,500, 1,000 bales, Alipur, 1,200 bales, Gojra, 800 bales, Silanwali, 400 bales Hasilpur at Rs5,400, 400 bales, Rajanpur and 1,000 bales, Khanewal at Rs5,500 and 200 bales, Mianwali at Rs5,600.