Cotton prices rise by Rs100
OCTOBER 11, 2011: Trading on the cotton market on Monday
resumed on a firm note as prices were quoted further higher
by Rs100 per maund in the ready section.
Analysts said a big cut of two per cent in the key discount
rate to 12 per cent has given a tremendous boost to the
buying capacity of both the mills and the spinners owing to
cheaper credit lines.
However, as the textile industry appears to be operating in
an orderly way without unsettling the prevailing unity to
check any speculative rise in prices the market is behaving
properly, they added.
Some of the fine big lots from the southern and central
Punjab ginneries were traded as higher as Rs6,550 to 6,000
per maund, indicating that spinners are trying to grab the
floating stock against their forward sales against export
orders, floor brokers said.
They said prices seem to be heading towards the target of
Rs7,000 per maund not in the very distant feature as mill
demand is increasing in each session.
“The higher daily mill offtake reflects that spinners and
mills are trying to keep prices within their export parity
levels and that is perhaps no one among them is inclined to
indulge in panic buying to boost,” they added.
Official spot rates were held unchanged, although in the
ready section most of the deals were quality-based.
The following are some of the notable deals reported by the
Karachi Brokers Forum on Monday:
SINDH TYPE: 2,000 and 1,000 bales, Khairpur and upper Sindh
at Rs6,400, 200 bales, each Nawabshah, Sakrand, and Khadro
at Rs5,600 and 5,750.
PUNJAB VARIETY: 1,200 bales, Khanewal at Rs6,400 to 6,600,
1,600 bales, Rajanpur and 400 bales, Mianwali at Rs6,450 to
6,500, 1,000 bales, 200 bales, each Sakuab Wali, Gaggon and
800 each Burewala bales, Haroonabad at Rs6,400, 200 bales,
Fazalpur at Rs6,450, 200 bales, each Bakhar, Shujaabad,
Liaquatpur, Rahimyar Khan, and Adda Mor, at Rs6,300, 200
bales, Chishtian at Rs6,200.
Courtesy: The DAWN