Prices ease on cotton market
KARACHI: Cotton prices on Monday eased from the weekend higher levels as some of the ginners holding long positions in part amid market talk of further fall followed by reports of steady arrival of phutti into the ginneries.
But leading analysts attributed to the decline, partly to reports of continued weakness of the New York cotton futures and partly to larger unsold stocks lying with the ginners, they said.
The fortnightly report (ended Nov 15) on arrival of phutti into ginneries showed an increase of about seven per cent at 8m bales, out of which mills have purchased 5.783m bales and the private sector exporters 0.245m bales, leaving an unsold stock of 1.940m bales, with the ginners, higher as compared to the figure of Nov 1 at 1.7m bales.
Floor brokers said unlike the previous week when spinners and mills made panic covering purchases even at the rising prices, leading among them kept to the sidelines awaiting further fall in prices.
Much of the support, however, again remained confined to fine lots from the Punjab ginneries but the highest rate was quoted around Rs5,700 per maund as compared to weekend highs of Rs6,100, they said.
“After having purchased about 2m bales from various markets, including the US, is said to have withdrawn to the sidelines followed by speculative selling,” they added.
Official spot rates were lower by Rs100 per maund at Rs5,700 but most of the deals in the ready section were done well below them.
The following are some of the deals finalised on Monday evening: SINDH TYPE:
100 bales, inferior type Sakrand at Rs4,500, 600 bales, Mirpurkhas at Rs4,200 to 4,300, 3,000 bales, Khairpur at Rs5,100 to 5,200, 1,000 bales, Bandhi at Rs4,600and 2,000 bales, upper Sindh at Rs5,400 to 5,500. PUNJAB VARIETY:
200 bales, Chichawatni at Rs5,400, 400 bales each, Bakhar and Gaggon at Rs5,500, 400 bales, Burewala at Rs5,525, 2,000 bales, Bahawalpur at 5,500 to 5,550, 1,000 bales, Alipur and 200 bales, DG Khan at Rs5,575, 2,000 bales, Khanewal at Rs5,600 to 5,700, 400 bales, each Sadiqabad and Vehari at Rs5,600, 2,000 and 400 bales, each Rahimyar Khan, Fazilpur and Rajanpur at Rs5,700.