Prices ease as growers resume phutti picking
KARACHI: Cotton prices on Thursday eased from the prevailing higher levels on active selling by the growers followed by reports of resumption of phutti picking operations in the lower Sindh cotton belt.The other factor was sharp fall in New York cotton futures on speculative selling triggered by higher US crop estimates, floor brokers said.
Analysts said the market was operating amid conflicting reports about the size of the crop and an erratic pace of phutti arrivals into ginneries.
“Until the size of the crop, after having assessed the losses in the lower Sindh cotton belt, is known mill spinners and mills may not indulge in panic buying,” they said.
As a result, ginners held back their selling offers as they had purchased phutti at much higher rates and were not inclined to sell
at the falling prices, they added.
Mill ready off-take, therefore, suffered a sharp fall as the bulk of business remained confined to the Punjab type at the lower rates.
Official spot rates were lowered by Rs100 per maund at Rs6,350 but in the ready section some of the deals were done well below
The New York cotton futures reacted from the overnight highs on selling and were marked down by 2.96 and 2.75 cents per lb for both the ruling December and the forward March contracts at 100.51 and 97.98 cents per lb, respectively.
The following are some of the deals reported by the Karachi Brokers’ Forum on Thursday:
SINDH TYPE: 2,000 bales each Khairpur and upper Sindh at Rs6,250 to Rs6,400.
PUNJAB VARIETY: 1,000 bales, Mian Wali at Rs6,550 to Rs6,600, 1,200 bales, Rajanpur at Rs6,450 to Rs6,500, 400 and 200 bales, Fazilpur and Jampur at Rs6,450, 400 bales, Burewala at Rs6,400, 800 bales, Khanewal at Rs6,350 to Rs6,500, 600 bales, Gaggon at Rs6,300 to Rs6,400, 200 bales, Arifwala at Rs6,300, 400 bales, Arifwala at Rs6,150, 200 bales, Chichawatni at Rs6,100 and 600 bales, Vehari at Rs6,075 and Rs6,150.