KARACHI, March 7: Cotton market on Friday maintained bullish trend as ginners remained in full control of the situation and were not inclined to liquidate their long positions in a haste.
Unlike the previous sessions, the bulk of the support remained confined to fine lots from the Punjab ginneries and some of the spinners again lifted contamination-free lots at Rs2,600 per maund excluding the 15 per cent sales tax.
Most of the other deals including some big lots changed hands between Rs2,550 to Rs2,575 per maund, reflecting further rise in prices in physical trading.
“The talk of export parity levels now appears irrelevant”, says a leading spinner “as financial sound mills are out to grab the floating stock well in time amid predictions of further rise in prices”.
Big parties who had built up fairly long positions in the beginning of the season between Rs2,000 to Rs2,200 per maund may not be at a disadvantage at this stage as most of them could comfortably balance their positions between the lower and higher sides. Moreover, they have larger export outlets and firm orders from the overseas buyers and there appears to be no problem for them.
But their weaker links most of whom operate on short-term basis because of financial constraints are claimed to be hard-pressed and may not be able to follow the predicted price flare-up, brokers said and there loud whispering some of them have to shut down their business as expensive lint eroded their profit margins.
It was perhaps because of these facts that ready offtake is gradually shrinking as the textile sector as a whole could not participate in the active proceeding at least for the near-term.
On the export front, private sector exporters sold 6,916 bales mainly to Bangladesh importers followed by Thailand and Bahrain. Total foreign sales so far rose to 0.150m bales.
Official spot rates consolidated the overnight gains and stood firm at Rs2,500 per maund, but New York cotton futures showed divergent trend. While the matured March settlement rose 0.50 cents to nominally close at 49.50 cents per lb, the ruling May fell 0.2 cents at 57.95 cents per lb.
Ready offtake was moderately higher at 10,000 bales as under:
SINDH TYPE: 3,100 bales, inferior variety, Jamsahib and Bandhi at Rs2,400.
PUNJAB VARIETY: 1,400 bales, Rahimyar Khan at Rs2,575, 1,000 bales, Bahawalpur at Rs2,550, 800 bales, Vehari at Rs2,550, 500 bales, Yazman at Rs2,500, 2,800 bales, Haroonabad at Rs2,550 and 400 bales, Kalchi/Faquirwali at Rs2,600.