KARACHI, March 8: The cotton market on Tuesday maintained a bullish trend but physical business remained light as spinners and mills were not inclined to chase prices further higher, floor brokers said.
Fine lint both from the upper Sindh and southern Punjab cotton belts changed hands at Rs14,000 per maund but a forward deal of 2,200 bales from some upper Sindh ginneries was done at Rs14,500 per maund indicating prices could rise further higher amid reports of falling unsold stocks with the ginners, they said.
After having hit all-time intra-session highs of 227.00 and 219.70 cents per lb the New York cotton features seemed to have stabilised around 214.50 and 214.14 cents for both the maturing March and the ruling May contracts respectively.
Market sources said there was no possibility of any improvement in global supplies as some producer countries with surplus exportable were sitting pretty comfortable on the perception that the buyers would have no option but to buy from them at higher prices.
The new crop is still far away and persistent rise in prices reflects there is no near-term fixed target which could be final as supply and demand factors will continue to determine ready prices, they added.
Meanwhile, registration of cotton on the export front up to Feb 23, 2011 since Aug 1, 2010 totalled 0.545m bales against which 0.317m bales had been physically shipped to various destinations including China.
Official spot rates were again firmly held at the overnight level of Rs12,500 per maund for an average quality lint.
The following are some of the deals reported by the Karachi Brokers` Forum on Tuesday.
SINDH TYPE:800 bales, Sanghar at Rs13,000, 400 bales, Ghotki at Rs14,000 and 2,200 bales, upper Sindh at Rs14,500 on credit.
PUNJAB VARIETY:400 bales each Bahawalpur and Khanpur and 600 bales, Ahmedpur East at Rs14,000.
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