KARACHI, March 30: Firm conditions were again witnessed on the cotton market on Friday as leading ginners managed to sell their lint at the season抯 highest levels. Most of the deals finalised were pertain to big lots as a leading textile group covered forward positions against foreign deals for the next quarter ending June 30, brokers said.
The fact that most of the deals were finalised at a uniform rate of Rs2,700 per maund indicated that future supply worries had gripped the spinners at least for the near-term, they said.
Pinners and mills who have been holding prices in line with their export parity levels have finally given in to holding capacity of the ginners,?says a leading cotton analyst from now onward the market appears to be slipped into the hands of the ginners?
But some others said much would depend on the final arrival figures of phutti during the next couple of sessions as spinners would base their future buying strategy on total supplies and their annual consumption needs.
Textile sector is now relying on the imports but ginners may not be in obliging mood and held on to their unsold positions rather than selling at the lower rates, market sources said.
However, indications are that weaker links of the leading spinners and mills who are relying on local supplies may have to buy lint at higher rates, they added.
Official spot rates were, therefore, again held at the overnight level of Rs2,600 but fine lots were sold at much higher rates.
New York cotton futures on the other showed a modest rise of 0.28 and 0.22 cents at 54.19 and 55.09 cents per lb for both the ruling May and the forward July contracts respectively.
Ready offtake was on the higher side as about 10,000 bales changed hands as under: 1,000 bales, upper Sindh at Rs2,700, 2,000 and 3,600 bales, Rahimyar Khan and Khanpur also at Rs2,700.
The fact that most of the deals were finalised at a uniform rate of Rs2,700 per maund indicated that future supply worries had gripped the spinners at least for the near-term, they said.
Pinners and mills who have been holding prices in line with their export parity levels have finally given in to holding capacity of the ginners,?says a leading cotton analyst from now onward the market appears to be slipped into the hands of the ginners?
But some others said much would depend on the final arrival figures of phutti during the next couple of sessions as spinners would base their future buying strategy on total supplies and their annual consumption needs.
Textile sector is now relying on the imports but ginners may not be in obliging mood and held on to their unsold positions rather than selling at the lower rates, market sources said.
However, indications are that weaker links of the leading spinners and mills who are relying on local supplies may have to buy lint at higher rates, they added.
Official spot rates were, therefore, again held at the overnight level of Rs2,600 but fine lots were sold at much higher rates.
New York cotton futures on the other showed a modest rise of 0.28 and 0.22 cents at 54.19 and 55.09 cents per lb for both the ruling May and the forward July contracts respectively.
Ready offtake was on the higher side as about 10,000 bales changed hands as under: 1,000 bales, upper Sindh at Rs2,700, 2,000 and 3,600 bales, Rahimyar Khan and Khanpur also at Rs2,700.
