Tight supply of phutti amid firm trend on cotton market
Rising anticipations about fall in the prices propelled growers and ginners to curtail supply of seeds cotton, supposing this strategy may help in stabilising the rates before Eid-ul-Azha holidays, experts said on Monday.
Copyright Business Recorder, 2012
Official spot rate was unchanged at Rs 5,500, they said. In the ready business, prices showed slight firmness as over 14,000 bales of cotton changed hands between Rs 5300-5700, they said. In both the Punjab and Sindh prices of seed cotton fine type gained Rs 150 to Rs 2700, while the inferior variety was unchanged at Rs 2400, they said.
Cotton analyst Naseem Usman said that local yarn is in demand by China and some other countries, but now weak economic picture of the world including China, causing unforeseen apprehensions among the businessmen.
The ginners are worried about falling demand by the buyers and particularly from the European countries, other analysts said. The mills preferred to be on the sidelines, expecting prices most likely to come down in the near future due to strong supply, they said.
In the meantime, some analysts were hoping may not go up sharply despite rising speculations about decline in the crop for the current season, other experts said. Besides, last week, the United States Department of Agriculture (USDA) raised its forecast for the world inventory, they said.
The following deals reported: 1400 bales from Shahdad Pur at Rs 5500, 600 bales from Tando Adam at Rs 5500, 800 bales from Khair pur at Rs 5650/5700, 400 bales from Upper Sindh at Rs 5650, 400 bales from Ghazi Ghat at Rs 5300, 800 bales from Burewala at Rs 5300/5500, 400 bales from Bahawal Pur at Rs 5375/5400, 1600 bales from Khanewal at Rs 5400/5450, 400 bales from Kabbir Wala at Rs 5400/5525, 200 bales from Mailsi at Rs 5400, 400 bales from Ahmed Pur at Rs 5425, 400 bales from Faqir wali at Rs 5450, 1000 bales from Hasil Pur at Rs 5450, 400 bales from Fort Abbas at Rs 5450/5500, 200 bales from Deepal Pur at Rs 5475, 600 bales from Haroonabad at Rs 5500, 600 bales from Fazil Pur at Rs 5600, 1000 bales from Rajan Pur at Rs 5600/5650, 1000 bales from Mian wali at Rs 5600 and 800 bales from Rahim Yar Khan at Rs 5600, they said.