KARACHI, July 9: After having fallen massively by Rs1,800 per maund during the last week, cotton market on Saturday resisted fresh fall as ginners did not lower prices followed by reports of increase in phutti prices by the growers.
KARACHI, July 9: After having fallen massively by Rs1,800 per maund during the last week, cotton market on Saturday resisted fresh fall as ginners did not lower prices followed by reports of increase in phutti prices by the growers.
In physical trading, some of the fine lots were traded as higher as Rs7,000 per maund and analysts are still divided over the future price outlook. They were unclear about the sudden change in the market trend partlybecause of snap halt in falling prices on New York cotton futures.
“The pause could be natural as consolidating forces seemed to have stepped in to ensure a fair price for the tiller”, some said.” But some others fear it could be well proved a takeoff point for another price flare-up”.
They said prices have fallen in line with the global markets but any speculative squeeze, notably on the New York cotton futures may cause a speculative rise here.
Meanwhile, reports reaching here from the cotton belts indicate that picking operations of phutti in the early sown areas is on the higher side owing to a warm weather in the southern Punjab cotton belt but unlike the previous week growers are not inclined to lower their asking prices at the last week’s level.
Official spot rates were held unchanged at previous level of Rs6,800 per maund but most of the deals in the ready section were quality based.
New York cotton futures also resisted fresh fall and were quoted modestly higher by 0.38 and 0.36 cent per lb for both the ruling July and the forward October at 116.58 and 113.88, respectively.
The following are some of the deals reported by Karachi Brokers’ Forum on Saturday.
SINDH TYPE: 400 bales, Hyderabad, 200 bales, Matiari at Rs6,800.
PUNJAB VARIETY: 200 bales, Mongi Bungalow, 1,000 bales, Pak Pattan and 400 bales, Khanewal at Rs7,000, 1,000 bales, Burewala and 400 bales, Mian Channel at Rs6,900 to 7,000, and 200 bales, Duniapur at Rs6,900.
Courtesy : Dawn Newspaper
