Cotton Market Review: Spot rates rises amid hectic trade
KARACHI: Cotton trade at the Karachi Cotton Market during this past week remained hectic while the spot rate also continued to rise on a week-on-week basis.
The growers and farmers sold produce of all grades on maximum spot rates. The Trading Corporation of Pakistan (TCP) remained in the market arena and contracted for produce of all grades. The presence of national entity till the termination of the trading season infused new life into growers and farmers, dealers said.
All grades of Punjab and Sindh quality produce changed hands during six sessions in the market. Growers and farmers went neck and neck making the deals for quality produce besides for low grades in the market during the past week. TCP as a second player remained busy in procuring all grade of lint of Punjab and Sindh, dealers said.
On Saturday, the last session of trading in the past week, the spot rate remained stable to close at Rs 1,925 per maund while over 18,000 bales changed hands, according to the report of the KCA. The spot rate, which started at Rs 1,840 per maund on the first session on Monday of the past trading week, continued to rise and closed at Rs 1,925 per maund while over 109,000 bales were traded during the week.
A senior trader said, players seem confident especially the small growers and farmers that TCP and private sector exporters will remain in the market for future trade beyond the end of the current year in view of a bumper crop. He said leading stockholders of the produce seemed confident and were holding back stocks for better spot rate.
The previous trading week witnessed moderate trading while the spot rate also declined due to panic selling of low grade stocks on reports of fresh arrival of quality cotton of Punjab in the market. However, TCP remained active in buying all grade of produce in order to secure the interest of the growers and to provide stability to spot rate, a senior broker said.
According to TCP official on Saturday, the national entity during its vigorous procurement operation the whole week crossed over purchases more than 2.33 million bales from the growers so far and 1.27 million bales have reached its warehouses.
A senior broker said exporters, mills, TCP and traders remained active during the past week. The spot rate, which started increasing per maund during first session closed with overall increase of Rs 85 per maund on week on week basis Saturday. The continuous rise in spot rate is an ample example of confidence of the players in the market, he further added.
Traders said leading growers and ginners remained successful in holding back the stocks and forced the buyers to buy the produce on their terms. —Staff Report