Business shrinks on falling cotton prices
KARACHI: Physical business on the cotton market on Friday shrank to a modest proportion as ginners held on to their positions and did not sell at the falling prices.
After having fallen by Rs700 to 800 per maund during the last couple of sessions from Rs5,800 and above it to 5,100, fine varieties fetched the highest rate of Rs5,300 on Friday.
Floor brokers said both the growers and the ginners have decided to hold on to their parity levels after prices have fallen below their minimum rates.
They said both claimed owing to higher cost of input, notably urea and pesticides, it was not possible to sell their products at the lower rates.
The current pause may or may not forestall fresh fall in prices as the market is in part being guided by the global developments on the commodity trading centres, some analysts feel.
As a result, much of the activity remained confined to fine lots from the southern and central Punjab ginneries and most of the deals were done at an average rate of Rs51,00 per maund.
Official spot rates were again lowered by Rs200 per maund at Rs5,200 but leading ginners were reluctant to sell at these rates.
The following are some of the notable deals reported by the Karachi Brokers Forum on Friday: SINDH TYPE:
2,000 bales, upper Sindh at Rs5,000 to 5,100, 400 bales Nawabshah at 4,500, 400 bales, Sanghar at 3,700 and 400 bales, Sultanabad at 3,510. PUNJAB VARIETY:
1,800 bales, Shadan Lund, 1,000 bales each Bahawalpur, Chichawatni, at 5,100, 800 bales, Layyah at 5,100 to 5,200,1,400 bales, Rahimyar Khan at 5,150 to 5,300, 3,000 bales, Khanewal at 5,150 to 5,200, 400 bales, Shujabad at 5,200, 200 bales, 600 and 1,000 bales, Noorpur, Rajanpur and Sadiqabad at 5,300.