KARACHI, Nov 29: Trading activity on the cotton market on Friday was maintained on the higher side as spinners and mills remained active buyers at the prevailing prices but leading ginners held on to their positions anticipating price flare-up.
Another 20,000 bales changed hands on the ready counter where price ideas of both the sellers and the buyers found meeting ground, although the major emphasis remained on the quality lint.
Floor brokers said spinners seem to have categorized the lint in various grades and offer prices according to them and that is perhaps why there is a difference of Rs175 per maund in the lower and fine grades of lint.
“Spinners are not very choosy”, ginners said “they are willing to pay as higher as the price of Rs2,075 per maund for the fine lint but they think twice before offering Rs1,900 for the lower grade of lint”.
As a result, lint from the central Punjab cotton belt, notably Sahiwal, Mian Channu, Chichawatni, Pir Mahal and some other stations is being sold between Rs1,900 to Rs1,925.
But those areas where the contamination-free phutti is being processed by the ginners according to official guidelines, it is being sold at a premium, an average rate being Rs2,050.
According to market sources and private sector exporters, contamination-free lint is also in great demand in the foreign markets and is sold at much higher rates as it is used to spin higher counts of cotton yarn.
Meanwhile, reports coming from the southern Punjab cotton belt indicate that the arrivals of phutti from the fields into the ginneries have considerably been slowed down as the second picking of phutti in some areas has just started.
The inward rush of arrivals now is expected after the Eid holidays and the official arrival figures for the fortnight ending Dec 15, will give a fair idea of the crop.
On the export front, private sector exporters on Nov 28, registered export contracts for 1,500 bales, signed with Indonesia and Philippines, with the Export Promotion Bureau. Total foreign sales since Sept 1, 2002 rose to 46,275 bales.
Official spot rates were firmly held at the overnight levels but in the ready section most of the deals were finalized in line with quality of lint.
Ready offtake was active and amounted to about 20,000 bales as under:
SINDH TYPE: 200 bales, Sinjoro at Rs1,750, 400 bales, seedstuff, at Rs2,000, 400 bales, Bucheri at Rs2,000, and 2,000 bales, Sanghar at Rs1,950.
PUNJAB VARIETY: 2,000 bales, each Rahimyar Khan and Sadiqabad and 1,000 bales, Rajanpur at Rs2,100, 4,000 bales, Bahawalpur and 1,000 bales, D.G.Khan at Rs2,050 to Rs2,075, 1,000 bales, Chichawatni at Rs1,900 to Rs1,925, 400 bales, Sahiwal at Rs1,925, 600 bales, Mian Channu at Rs1,900 to Rs1,925, 200 bales, Pir Mahal at Rs1,920 and 1,000 bales, Yazman at Rs2,050.