Cotton market steady on hectic selling
KARACHI, Oct 3: Trading on the cotton market on Monday resumed on an easy note as prices tended further lower on active selling by the ginners followed by reports of steady arrivals of phutti into the ginneries.
Some of the deals in inferior types Sindh and Punjab were finalised at Rs5,600 and Rs5,800 per maund but on average bulk of the business was done at Rs6,200 per maund for fine types.
Floor brokers said sudden pick in arrivals of phutti seemed to have created more than one problem for the ginners, the most pressing among them being volatile prices of both phutti and lint.
“The ginners, therefore, are not inclined to long positions of unsold stocks of lint and tried to dispose them of on phutti-based rates after adding conversion charges”, they added. Ginners said most of the growers are fixing prices of their stocks around Rs2,800 per maund or slightly above them depending on the size of the stocks in trade but big growers were said to be getting higher rates.
Meanwhile, figures about the damage to crop in the lower Sindh cotton belt owing to last month’s heavy rain and floods are being prepared by the official quarters and according to unofficial reports the total may not cross the level of 0.7m bales.
But on the other hand crop in the Punjab cotton belt is close to normal as larger sowing of the BT type of seeds is yielding higher per acre production.
Official spot rates were revised downward by Rs200 per maund for an average quality of lint but in the ready section most of the deals were quality-based. The following are some of the deals reported by the Karachi Brokers Forum on Monday:
SINDH TYPE: 1,000 bales, each upper Sindh and Khairpur at Rs6,200, 200 bales, Tando Adam at Rs5,600.
PUNJAB VARIETY: 200 bales, Mianwali at Rs6,400, 200 bales, Shadman Lund and 400 bales, Tonsa Sharif at Rs6,300, 200 bales, each Gaggon and Adda Floor at Rs6,250, 200 bales, each Yazman, Bakhar and Hasilpur at Rs6,200, 1,000 bales, Burewala at Rs6,100 to Rs6,400, 200 bales, Mian Channu at Rs6,000, and 200 bales, Dharanwala at Rs6,050, 400 bales, Haroonabad at Rs5,850 to 6,200, 200 bales, Jehania at Rs5,800, and 800 bales, Vehari at Rs5,700 to 6,100.