KARACHI, Oct 30: Trading on the cotton market on Monday resumed on a steady note as spinners and mills covered positions at the falling prices both in the Sindh and the Punjab varieties.
But after mid-session some of the ginners indulged in hasty selling for no apparent bearish reason and sold some big lots at the lower levels.
The earlier steadiness was attributed to reports of below normal arrival of phutti in the ginneries as picking operations remained suspended because of Eid holidays, dealers said.
They said cotton pickers are claimed to be back in the fields and arrivals of phutti are expected to be normal by the end of the current week and could have positive and negative impact on the price depending on their size.
Some of the deals in the Sindh type were reported around Rs2,325 per maund, about Rs50 lower than the pre-Eid holiday trading range, while Punjab variety was traded between Rs2,385 to 2,425 depending on the quality of lint in trade.
Floor brokers said some of the lots from the southern Punjab cotton belt fetched the higher prices because of fine quality and staple length as pent-up mill demand figured prominently.
“Some of the mills needed immediate supplies amid reports of depleting stocks in the backdrop of about a week holiday during which physical business remained suspended,” they added.
Official spot rates were revised downward by Rs25 at Rs2,350 per maund but in the ready section Sindh type was traded well below them.
Ready off-take was active as about 15,000 bales of Punjab type was traded between Rs2,385 to 2,425 per maund, while 1,000 bales, of Shahdadpur and 2,000 bales of Nawabshah were done at Rs.2,325.
