KARACHI: Karachi cotton market witnessed panic selling by ginners on Friday that resulted in further decline of Rs100 in the spot rate, a dealer said.
The spot rate fall to Rs5,000 per maund (37.324kg) and Rs5,358 per 40kg, while ex-Karachi spot rate declined to Rs5,130 per maund and Rs5,488 per 40kg after addition of Rs130 as upcountry expenses. It was the third continuous reduction in the spot rate, the dealer said.
An analyst said that the international market, which recorded a decline earlier this week, affected the prices in the local market.
“Panic selling by ginners was a result of decline in the international prices,” he said. “The spot rate is further likely to come down in the coming days, as ginners have failed to control their lint.”
Ginners are protesting against decline in the prices, but did not receive much response from their members, he said. They have demanded the Trading Corporation of Pakistan to purchase lint directly from them, which would stabilise the market.
Pakistan has recorded export registration of 386,797 bales from August 1 to December 7; these include 377,792 bales from the new crop and 9,005 bales from the old one. During this period, 186,945 bales from the new crop and 13,345 bales from the old one were shipped abroad.
After a decline for few days the international market registered an increase at the New York cotton market on Thursday, while China cotton index also increased by a few points. March contracts at the New York cotton market increased by 1.17 cents to 86.29 cents per pound and May futures increased by 1.07 cents to 85.86 cents per pound.
Karachi cotton market recorded transactions of around 27,000 bales on Friday in between Rs3,125 to Rs5,000 per maund. Around 400 bales of Mirpurkhas were sold at Rs3,125 per maund, 200 bales of Tando Adam at Rs3,150, 600 bales of Sultanabad at Rs3,200, 1,000 bales of Benazirabad at Rs3,900, 400 bales of Shahdadpur at Rs4,100, 1,000 bales of Khairpur at Rs4,250 to Rs4,400 and 1,000 bales of upper Sindh were sold at Rs4,800 per maund.
Khuzdar’s 400 bales were sold at Rs5,000, 600 bales of Yazman Mandi at Rs4,500, 2,000 bales of Haroonabad at Rs4,500 to Rs4,650, 400 bales of Chistian at Rs4,550, 1,000 bales of Hasilpur at Rs4,600 to Rs4,800, 1,000 bales of Faqirwali at Rs4,500 to Rs4,600, 1,000 bales of Ahmedpur at Rs4,600 to Rs4,800 and 2,000 bales of Fort Abbas were sold at Rs4,650 to Rs4,700 per maund.
Bahawalpur’s 1,000 bales were sold at Rs4,700 to Rs4,800, 400 bales of Shujabad, 600 bales of Burewala, 400 bales of Mian Channu and 400 bales of Lodhran were sold at Rs4,700, 1,200 bales of Chichawatni at Rs4,700 to Rs4,800, 2,000 bales of Noorpur at Rs4,800 and 2,000 bales of Khanewal were sold at Rs4,600 to Rs4,900 per maund.
Likewise, Rahim Yar Khan’s 2,000 bales, 1,200 bales of Sadiqabad, 1,200 bales of Mianwali and 1,000 bales of Kabirwala were each sold at Rs4,900, while 400 bales of Taunsa Sharif and 400 bales of Rajanpur were each sold at Rs5,000 per maund.