Physical business on the cotton market on Tuesday was maintained on the higher side, as spinners were not inclined to take even a technical breather. About 12,000 bales, both from Sindh and Punjab belts, changed hands depending on quality premiums but well below Rs2,700 per maund, the lowest and the highest rates being Rs2,525 and Rs2,685, respectively.
Ready offtake has progressively picking up for the last couple of sessions and it reflects that the fears of a short crop are fading each session based on size of phutti arrivals into the ginneries.
Floor brokers said lint prices seemed to have almost stabilised around the current levels, as both the ginners and spinners mean business to keep the wheels moving. The lowering of selling rates of phutti by the growers was said to be the chief factor behind the normal trading on the cotton market.
Although New York cotton futures stood well above the benchmark of 50 cents per lb, its erratic movements forced the spinners to stay on the local market rather than opting for imports that restored sanity in cotton trade, they said.
But some ginners said the arrival figures of phutti into the ginneries due in the first week of October would give a fair idea of crop despite the fact that major growing areas in the southern Punjab cotton belt where the picking of phutti is resumed a bit late is still to join the total.
Official spot rates were, therefore, again held unchanged at Rs2,575 per maund, well below those at which the ready business is being done.
New York cotton futures on the other hand rose by 0.29 and 0.35 cents per lb at 51.11 and 53.48 cents per lb, respectively, on revival of foreign demand.
