KARACHI, April 15: Trading on the cotton market on Saturday resumed on a firm note as pent-up demand owing to strike figured prominently at the prevailing prices.
Some of the leading spinner groups appeared to be active buyers of both fine and low-mic lots below Rs2,500 per maund and lifted all the lots offered by the ginners around these levels, floor brokers said.
As a result, the post-closure session witnessed big lot business, each lot comprised well over 1,600 bales notably from the southern Punjab cotton belt, they added.
Some of the spinners, however, remained conspicuous by their absence apparently eyeing the TCP tender for 30,000 bales, to be opened on April 18, for local and foreign sale.
They said that leading ginners who still hold an unsold stock of around a million bales seemed to be in no mood to hold on to their positions as chances of an increase in prices were diminishing.
“Owing to strong presence of the TCP as a seller, there is a remote possibility of an increase in prices”, says a leading ginner, adding “the TCP still hold a long unsold position and may remain in the market before the arrival of new crop from the lower Sindh cotton belt”.
According to market source the TCP still held an unsold stock of 0.250m bales, which it would like to dispose during the next couple of months through auctions.
Meanwhile, reports coming from the lower Sindh cotton belt indicate that picking operations for the new crop are expected to be resumed by the end of next month or early June. The condition of the crop, which is in flowering stage, is good and there are no incidents of pest attack, they said.
The new crop sowing operations in the upper Sindh and southern and central Punjab are expected to be resumed by May 15 and will end on June 15, in line with the climatic conditions said to be ideal for a good crop.
Official spot rates were, therefore, again quoted at the previous levels but in the ready section most of the deals were done on higher rates depending on quality.
The following are some of the lots, which changed hands in the ready section, all from the Punjab cotton belt: 3,091 bales, Rahimyar Khan at Rs2,435 to Rs2,475, 1,600 bales, Mailsi at Rs2,400 and 1,650 bales, D.G. Khan at Rs2,450.
