Cotton market on Saturday recovered a good part of the overnight fall as ginners raised their asking prices by Rs25 per maund in the backdrop of higher mill demand but no spinner went beyond his export parity level as was reflected by a low volume figure.Some of the fine lots were traded as higher as Rs3,550 per maund as a leading textile group is said to be after each premium quality lint needed by it to produce higher counts of cotton yarn for the export markets, floor brokers claim.
“Foreign textile markets are again heating up after relative slackness for the last couple of months,” they said, adding: “The mill demand is expected to stay on the higher side and may cause fresh increase in prices in the subsequent weeks”.

But some others said buying prices may remain tied to the quality of the lint, both fine and inferior lots, in trade as spinners may not go beyond their export parity levels.

This fact is also well reflected in the daily turnover figures, which at time are alarmingly low and sometime sharply higher depending on the asking prices by the ginners, they added.

On the export front, private sector exporters have physically shipped, up to April 7, 2008, 0.171 million bales of lint cotton to various countries against the forward sales of 0.193 million bales during the same period.

Meanwhile, reports reaching here from the lower Sindh cotton belt indicate that sowing of the new crop, though a bit late because of shortage of irrigation water, is well in progress and is expected to be completed during the next couple of days, local market sources said.

New York cotton future suffered a fresh setback of 0.59 and 0.44 cents per lb at 74.16 and 77.69 cents for both the ruling May and the new crop July settlements, respectively.

Official spot rates were again revised upward by Rs25 at Rs3,300 per maund as ginners raised their asking prices for an average quality lint.

Mill ready off-take was light amounting to over 2,000 bales, the following being some of the notable deals: 1,000 bales, Gilanwali at Rs3,550, 600 bales, Rahim Yar Khan at Rs3,375, and 200 bales, Khanpur Mehar at Rs3,470.

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