Cotton prices on Friday remained stable at the previous levels amid an actively traded session for third session in a row as spinners are not inclined to take even a technical breather.

The interesting feature was that spinners major buying thrust was again on the central Sindh lint owing to its better quality, while its Punjab counterpart was available at slightly lower rates, floor brokers said.
Some of the Punjab types were traded as lower as Rs4,075 but Sindh variety was not available below Rs4,125, sustaining a premium over its Punjab counterpart, they said.

They said price differential of Rs75 per maund between the two reflects very badly on the central Punjab lint, which in normal seasons is sold at a premium over the former.

Cotton analysts failed to pinpoint the reasons behind this phenomenon but some others said late rain and the current pest attack in the entire cotton belt may have damaged its fibre content.

Meanwhile, reports trickling in from the cotton belt indicate that second picking of phutti in the early growing areas is well in progress and should have pushed prices lower but strong mill support keep them on the higher side.

News from the export front were a bit bearish as local prices are higher than the foreign ones and that is perhaps why exporters are out of the market for the last couple of sessions.

Official spot rates were remained firm at the previous level of Rs4,125 per maund and bulk of the ready business was done around them.

New York cotton futures, on the other hand, failed to sustain the overnight run-up as both the contracts fell by 1.29 and 1.27 cents per lb at 67.16 and 69.36 for the ruling October and the distant December.

Mill intake was on the higher side as another 20,000 bales changed hands as under:

SINDH TYPE: 3,000 bales, Shahdadpur at Rs4,125 to 4,150, 2,000 bales, Tando Adam at Rs4,125 to 4,135, 1,000 bales, each Khipro, Hyderabad and Sanghar, 600 bales, Shahpur Chakkar,400 bales, each Jhoke and Nawabshah at Rs4,125,and 1,000 bales, Mirpurkhas at Rs4,100 to 4,125.

PUNJAB VARIETY: 1,000 bales each, Chichawatni and Burewala at Rs4,100 to 4,125, 1,000 bales, Mian Channu, 400 bales, Gojra and 200 bales, Muridwala at Rs4,100, 600 bales, Pak Pattan, at Rs4,075 to 4,100, 600 bales and 400 bales, Bahawalnagar and Arifwala at 4,075.
Source

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