KARACHI, June 2: Cotton market on Friday maintained an optimistic future price outlook on the perception that pressure on ready supplies in the coming weeks could trigger panic buying by spinners.
The overnight price gains were therefore consolidated although fine lots from the southern Punjab ginneries again changed hands around Rs2,600 per maund, Rs100 higher than the average selling rate, dealers said.
The recent heating up of the New York cotton futures market on the reported revival of Chinese demand was said to be another supporting factor fuelling the current price flare-up, they said.
New York cotton futures on Thursday were quoted further higher at 52.35 and 55.85 cents per lb, up by 1.41 and 0.57 cents, respectively, signalling that the imports of lint may not be that competitive as far as export markets of textiles are concerned.
“Leading spinners and mills who still need more supplies to cover their forward textile deals are worried over the developing position on the supply and demand front and could not precisely decide how to react,” brokers said.
That is perhaps why the daily mill off-take was highly erratic and spinners have to take an overview of the export market before buying at the higher asking prices, they said.
Meanwhile, reports coming from the lower Sindh cotton belt indicated that picking operations of phutti were slowly gathering momentum but the arrivals into the ginneries were on the lower side.
However, market sources said that some of the Sindh ginners hoped to resume ginning operations by the end of the current month and the new crop was expected to find its way into the market by the middle of the next month.
It was perhaps in this background that official spot rates did not show any change and were held at the overnight level of Rs2,500 per maund.
Ready off-take was light totalling 4,000 bales, following being some of the notable deals: 660 bales, Liaquatpur at Rs2,550, 1,000 bales, Rohri at Rs2,575 and 400 bales, fine lots from Rahimyar Khan at Rs2,600.
