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KARACHI: The cotton market on Tuesday maintained its upward drive on active mill demand amid fears of an imminent price flare-up in unision with the foreign trading centers.
Some of the fine lots from the Punjab ginneries were traded as higher as Rs6,800 per maund, indicating that the next target of Rs7,000 per maund is now that far off, floor brokers said.
In an identical development on the world cotton front, New York cotton futures consolidated well above the 100 cents per lb mark, having positive impact on the prices elsewhere, they added.
Ginners said arrivals of phutti into the ginneries, notably in the Punjab cotton belt are fairly steady but snap pick up in mill demand is fuelling the current price flare-up.The grower appears to be in no mood to hold back stocks of phutti and is dumping them in ginneries both at a fixed rate of Rs2,600 to 2,800 per maund or slightly above it depending on the quality of lint.
The other contributory aiding factor behind the prices increases was major spinner thrust on the Punjab lint apparently for better quality, while lower and central Sindh lint remained depressed owing to inferior quality caused by last month’s rain and floods, they added.
New York cotton futures were quoted further higher by 1.36 and 1.40 cents per lb at 103.34 and 100.46 cents for both the ruling October and the distant December contracts, respectively.
Official spot rates showed fresh sharp rise of Rs150 per maund at 6,450 per maund but in the ready section most of the deals were done well above them.
The following are some of the deals reported in the ready section by the Karachi Brokers Forum on Tuesday:
SINDH TYPE: 2,400 bales, Khairpur and 1,000 bales, upper Sindh at Rs6,400 to 6,500, 200 bales, Tando Adam at Rs5,500, and 400 bales, Mirpurkhas at Rs5,550 to 5,800.
PUNJAB VARIETY: 1,000 bales, Mianwali at Rs6,700 to 6,800, 1,600 bales, Burewala at Rs6,600 to 6,650, 200 bales, each Arifwala and Fazalpur at Rs6,600, 200 bales, Bahawalpur, Rahimyar Khan and 600 bales, Chichawatni at Rs6,500, 400 bales Layyah at Rs6,500 to 6,600, 200 bales, each Hasilpur, Sahiwal, Pak Pattan, at Rs6,450, 200 and 400 bales, each Ahmedpur East, Chiniot, D.G. Khan, Gojra, Muridwala, and Toba Tek Singh at Rs6,400, 800 bales, Haroonabad at Rs6,400 to 6,450, and 200 and 400 bales, Adda Mor and Garma Raja at Rs6,300 and 6,350.
