cotton market review: Mills remain eager for quality cotton

The pace of cotton trade increased at the Karachi cotton market during the last week.

Traders said the leading mills and spinners remained eager for cotton. Quality lint of the Punjab dominated trade for most of the sessions. They further said that due to high demand of cotton the ginners of Punjab and Sindh managed to get high price for their stocks.

The spinners purchased cotton of all qualities, but buying by the leading mills was confined to quality lint. The private sector exporters also purchased cotton, but in limited quantity.

The poor quality lint fetched around Rs 2,125 per maund to Rs 2,240 per maund during the week, said dealers. Little quantity of quality lint of upper Sindh changed hands around Rs 2,460 during the week. A senior trader said that due to surge in prices in international market of 53 cents to 54 cents per pound, the leading mills and private sector exporters consolidated their future positions.

He said cotton arrivals declined by 29.67 percent to 2.542 million bales till October 16 compared to same period last year.

A senior broker said textile mills purchased 1.614 million bales from ginners and private sector exporters bought 30,000 bales.

A trader said TCP floated an international tender for export of 50,000 bales of raw cotton from its stocks of last crop. He said foreign buyers and Pakistani exporters offered bids for 50,000. TCP would open tender on October 26, he added.

Another broker said more than half of the 23,000 fine quality bales of Sindh's new crop were traded for November delivery. Leading mills offered Rs 2,410 per maund to Rs 2,450 per maund for fine lint. On Saturday, the last trading session of the week, the spot rate remained at Rs 2,325 per maund while around 18,000 bales changed hands. The quality lots fetched over Rs 2,385 per maund.

The KCA spot rate, which started at Rs 2,350 per maund on Monday, moved up by Rs 35 per maund to Rs 2,385 per maund on Tuesday. It declined by Rs 25 per maund on Wednesday to Rs 2,350 per maund and by Rs 25 per maund to Rs 2,325 per maund on Thursday. The physical market prices ranged between Rs 2,300 per maund and Rs 2,450 per maund. Karachi Cotton Association reported some future contracts on Saturday.

Around 10,200 bales of Sangahr fetched Rs 2,225 per maund, 1,000 bales of Tando Adam changed hands at Rs 2,285 per maund, 1,000 bales of Sadiqabad at Rs 2,325 per maund, 200 bales of Sarhari at Rs 2,300 per maund, 200 bales of Bandhi at Rs 2,300 per maund and 800 bales of Chichawatni at Rs 2,375 per maund.

Around 2,000 bales of Bahawalpur were traded at Rs 2,400 per maund, 2,000 bales of Jahania at Rs 2,400 per maund, 1,000 bales of Garma Raja at Rs 2,400 per maund, 1,000 bales each of Khanewal and Alipur at Rs 2,400 per maund and 500 bales of Shadur Lund at Rs 2,400 per maund.

Dailytimes.com.pk