KARACHI, Dec 27: Brisk activity was witnessed on the cotton market on Tuesday as spinners and mills covered their forward positions in a bit haste amid rumours that the official procurement price is expected to be fixed around Rs6,000 per maund.
The rumour was given credence on reports that a representative meeting of all stakeholders in the cotton trade is being held in Islamabad Wednesday (Dec 28) to fix a consensus support price at which the Trading Corporation of Pakistan (TCP), will purchase lint from the ginners, according to market sources.
They said as a result, prices in the ready section have risen by about Rs400 per maund during the last couple of sessions and heading further higher apparently to the rumoured level of Rs6,000 per maund.
About 30,000 bales, including some big lots between 2,000 and 3,600 bales changed hands at rising prices between Rs5,400 and 5,500 per maund for fine types from the southern Punjab ginneries, they added.
Lint prices have been on the decline before the official intervention and the TCP was directed to buy a million bales to ensure fair prices for growers.
At one stage, even fine types were sold well below the Rs5,000 per maund mark.
Cotton analysts predict that despite higher crop estimates, price outlook is expected to be on the higher side during the coming months as apart from increase in mills demand private sector exporters of lint are also active on reports of higher global rates and demand.
Arrival of phutti into the ginneries is said to be now normal as prices of phutti are also showing a progressive increase.
Official spot rates were quoted further higher by Rs100 at 5,350 per maund, but in the ready section prices moved further higher.
The following are some of the deals reported by the Karachi Brokers Forum on Tuesday:
SINDH TYPE: 1,400 bales, Shahdadpur at Rs4,400 to 4,650, 2,000 bales Khairpur at 4,900 to 5,000, 2,000 bales, upper Sindh at 4,850 to 5,200, 600 bales, Tando Adam at 3,400 and 400 bales, Kotri at 4,400.
PUNJAB VARIETY: 400 bales, each Pak Pattan and Chishtian at 4,800 and 5,000, 800 bales, Haroonabad at 5,100, 1,600 bales, Khanewal at 5,200 to 5,500, 400 bales, Burewala at 5,250, 2,000 bales, Fort Abbas at 5,300, 400 Bahawalpur at 5,350 to 5,400, 1,200 bales, Lodhran at 5,350 to 5,400, 3,600 bales, Khanpur and 3,400 bales, Jalalpur at 5,400 to 5,500, 1,000 bales, Liaquatpur at 5,400, 2,000 bales, Rahimyar Khan at 5,450 to 5,500 and 2,000 bales, Sadiqabad at 5,500.