Karachi, Sept 15: Cotton market on Saturday gave another improved performance on active demand but prices remained largely range-bound us spinners were not inclined to disrupt the status quo.
News from the Central Punjab cotton market were not that encouraging as stray lots changed hands around as low as Rs. 1750.00 poor quality but the lint from the lower Sindh remained expensive as later in the evening most of the deals were finalized around Rs. 1850.00 per mound.
However, spinners were not inclined to take a breather and continued cover positions against their forward sales of cotton yarn discounting the rumors of a possible good harvest.
The extract has been taken from the report issued by the Karachi Cotton Exchange on 15th September.
Meanings of difficult words
|Range-bound||the limit of possible variations|
|Status quo||existing sate of affairs|
|Breather||pause, bull, respite, break, rest|
|Cover positions||buying to cover forward sales|
|Forward sale||sale for future settlement/delivery|
Tendency of the market
The cotton market showed healthy signs with strong demand and high prices in spite of the expected good harvest of cotton. Good harvest will increase the supply bringing down the prices.
Heavy demand and the desire to maintain the status quo kept the market in good spirits.
This excerpt belongs to the report of September 15, issued by the Karachi Cotton Exchange.
The report paints bright conditions prevailing in the cotton market showing still improved and better performance over the last day, That is the market last day performed well and it kept its tempo on 15’1′ September, the second day in a row.
Such a condition was fallout of strong demand for thePunjaband Sindh cotton. However, the prices fluctuated upward within a limited extent because the spinners wanted to maintain a status quo the news of centralPunjabcotton were not inspiring and did small business at the average rate of Rs. 1750 per maund, the reason being low quality. On the other hand, cotton from the lower Sindh, was available at higher rates and closed at as high as Rs.1850 per maund. Daring the session the rumors circulated about the expected good harvest of cotton. But the speculators did not heed to them and continued buying to settle future deals.
The Karachi cotton market continued performing well for the second continuous day despite discouraging news from the Punjab. However, Sindh cotton remained expensive and closed at Rs. 1850, while Punjab cotton closed at Rs. 1750. The spinners discarded all negative news and kept buying to settle futures.
The cotton market may register a fall in prices at the news of good harvest, although a delayed reaction.