Prices remain stable on cotton market

Karachi: Cotton prices on Saturday remained stable around the previous levels in physical trading as ginners were not inclined to sell below their parity levels.

Another about 15,000 bales changed hands, both from the Sindh and the Punjab ginneries around Rs2,800 to 2,850 per maund for the former and from Rs2,800 to 2,900 for the latter depending on the quality of lint and its Mix.

Floor brokers said the difference between the both has been reduced to Rs50 per maund, while in normal climatic conditions it is well over Rs100 per maund, indicating that the central Sindh lint has an improved quality as compared to previous season.

However, spinners appear to be in a bit haste to grab the floating stock at the current prices, which are said to be close to their export parity level after value-addition.

Although official figures of arrivals of phutti into the ginneries for the month of September are not released by the Pakistan Cotton Ginners Association (PCGA), an average daily mill off-take of about 50,000 bales indicates that their buying operations are at peak at the fallen

prices.

Market sources said the PCGA arrival figures for the first fortnight of the current month are expected to be released after Sept 15.

Meanwhile, private sector exporters have registered export contracts for 8,087 bales with the Trade Development Authority of Pakistan (TDAP) up to Aug 31, comprising both the old and the current crop.

According to official figures 5,869 bales of lint were physically shipped to various destinations during the same period.

There was no change in the official spot rates, which were held unchanged at Rs2,975 per maund.

The following are some of the important deals, which gone through late in the evening:

SINDH TYPE: 2,200 and 2,000 bales, Shahdadpur, Tando Adam and 600 bales Hyderabad, at Rs2,825 to 2,850, 1,000 bales, each Sanghar and Khipro at 2,800 to 2,850, 400 bales, Jhole at 2,825 and 200 bales, Kotri at 2,850.

PUNJAB VARIETY: 600 bales, Burewala at Rs2,875 to 2,900, 400 bales, Bahawalnagar at 2,875, and 400 bales, each Sahiwal, and some other stations at Rs2,875.