KARACHI, April 13: Trading on the cotton market after Wednesday’s closure resumed on a steady note on Thursday as some of the spinners made active covering purchases at the prevailing prices.
Physical activity on Wednesday remained suspended to mourn the death of those killed in a suicide attack on a religious congregation in the city, according to Karachi Cotton Association (KCA) sources.
Although spot rates did not show any change, some of the fine lots were sold at the season’s peak level of Rs2.500 per maund.
However, there was no panic selling or buying by any of the contenders as was reflected by the unchanged ruling prices, although ready offtake was light.
Floor brokers said the market could take some more days to resume normal trading as spinners and mills are unsure about the prompt deliveries to make the falling stocks owing to fears of law and order situation.
“The city is currently passing through a state of high tension in the post-carnage trading and the spinners and mills also worried over the developing law and order situation,” they said.
The market could back on the rails by the next week as by that time the prevailing tension may be defused after the results of the probe are out, some others said.
Reports coming in from the upcountry markets also indicate that transport problems are under pressure because of the absence of normal trucking as the three-day mourning of the tragic deaths continues in the interior also, market sources said.
New York cotton futures stayed easy amid falling overseas demand and fell by 0.03 and 0.12 cents per lb at 52.28 and 54.16 cents for both the ruling May and the distant July contracts, respectively.
Local official spot rates on the other hand were firmly held at the last level of Rs2,425 per maund but some of the fine lots were traded on the higher side.
Ready offtake was modest totalling about 6,000 bales as under: 1,155 bales, upper Sindh at Rs2,475; 1,100 bales, Haroonabad at Rs2,335; 1,200 bales, Rahimyar Khan at Rs2,450; and 2,000 bales, Khanpur at Rs2,475 to Rs2,500.
