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KARACHI, Jan 5: Trading activity on the cotton market on Wednesday failed to pick up as price ideas of sellers and buyers failed to find a matching ground amid volatile New York cotton futures.
Floor brokers said a total crop shortfall of 1.7m bales suggested that the price outlook was expected to be bullish and ginners were holding on to their unsold positions eyeing level beyond Rs10,000 per maund.“Owing to a price war, the market is not heating up and spinners are not inclined to go beyond their export parity levels causing slowdown in the physical activity,” they added.
Spinners said they may not be in a position to procure cotton around Rs10,000 per maund or beyond this level at least for the near-term and were probing the world markets to find lint at cheaper rates.
They said apart from India, the next target was Central Asian countries where the lint was a bit cheaper but the quantities were too small to make economic consignment.
However, efforts were underway to line up substantial quantities after probing the other markets as well, they added.
Official spot rates were firmly held at the overnight level of Rs9,700 but some of the deals were done at well higher rates.
The New York cotton futures on the other hand posted modest gains of 1.58 and 1.59 cents per lb at 143.78 and 137.89 cents for both the maturing March and the forward May contracts respectively.
The following are some of the deals reported in the ready section on Wednesday evening by the Karachi Brokers' Forum to KCA.
SINDH TYPE: 800 bales, Upper Sindh at Rs9,800 to Rs10,000.
PUNJAB VARIETY: 1,200 bales, Rahimyar Khan at Rs9,800, 400 bales, Sadiqabad at Rs9,800 and 600 bales, Mian Wali at Rs9,900 to Rs10,000.
