KARACHI: Cotton price slightly fell on Wednesday as leading spinners withdrew to the sidelines. However, some millers remained active and indulged in short covering.
Floor brokers said that higher asking price by ginners forced many spinners to opt for medium and lower quality cotton which was still available at lower prices. However, the most interesting development was that many spinners diverted to the Trading Corporation of Pakistan (TCP) to meet their demand.
The state-owned corporation, which holds around 84,000 bales of cotton from last season, is offering cotton at relatively lower prices and market reports suggested that around 4,100 bales were sold at Rs5,860 per maund.
Since quality lint prices have risen considerably due to strong demand, spinners have now moved to book medium and lower quality cotton or are approaching the TCP to meet their demand.
The Karachi Cotton Association (KCA) cut its spot rates by Rs50, to Rs5,600 per maund, whereas prices of quality lint remained high.
Major deals on ready counter were: 600 bales from Hala (at Rs3,700 per maund), 200 bales Tando Adam (Rs4,500), 200 bales Shahdadpur (Rs4,700), 200 bales Moro (Rs5,085), 1,000 bales from Noa-abad (Rs5,100), 400 bales Kot Lalo (Rs5,100) and 400 bales Shaher Sultan (Rs5,175).
The world cotton markets also witnessed some correction because of long position held by buyers, and entered into profit selling. As a result, the New York cotton market gave mixed price trend.