KARACHI, Dec 9: Trading on the cotton market on Monday resumed on a firm note as pent-up mill demand figured prominently around the fine lots but ginners were not inclined to lower their asking prices.
Physical business was, therefore, remained on the lower side, although local spinners managed to secure a modest number of lots around Rs2,100 or slightly above this rate depending on the quality of the lint in trade.
Much of the official trading time was spent in exchanging Eid greetings between the brokers and spinners and the KCA officials rather than in ready business.
The post-holiday session was relatively cheerless, although most of the leading spinners were in a mood to fill-in the supply gap caused by the four closures on account of Eid-ul-Fitr, brokers said.
However, the normal activity is expected to pick up during the next couple of sessions as spinners have to go a long way to cover their positions against forward sales of cotton yarn to the foreign buyers, they added.
As the latest arrival figures of phutti show an increase of about 6.5 per cent for the second consecutive fortnight around 6.68m bales, the fears about a possible crop shortfall has been allayed, says a leading spinner.
“But I don’t think any softening in the lint prices at least for the near-term as the strong mill demand will not allow ginners to sell at the lower rates”, he adds.
There is, however, a perception that lint prices could rise further above Rs2,200 per maund as ginners have already assessed the annual requirements of both the spinning and weaving sectors.
“I think the mill annual offtake could hit the high mark of 1.2m bales or slightly above this level during the current season ending Aug 31, 2003”, one ginner predicts “leading among us are working on this strategy”.
The recent fall in phutti prices from the seasonal peak level of Rs960 per maund to Rs905 has worried the grower but he is not inclined to hold on to his stocks and selling them at the ready rates.
Official spot rates remained pegged at the last levels as ginners held on to their positions having an overview of supply and demand.
Ready offtake was light as till late in the evening about 3,000 bales, mainly from the Punjab ginneries changed hands.