October 10, 2001	Wednesday	Rajab 22, 1422

KARACHI, Oct 9: Cotton prices on Tuesday maintained their recovery drive for the second session in a row as spinners and mills continued to cover their positions against forward sales of cotton yarn.

However, brisk ready offtake reflects that ginners are not inclined to hold long unsold positions followed by predictions that the current recovery may prove deceptive.

But brisk buying spinners indicate that they are out to inflate their inventories at the prevailing prices as the direction of the market is still unclear.

For the second session in a row they lifted all the lots totalling well above 10,000 bales, adding confidence to the hereto shaky ginners.

The prevailing prices may not have touched seasonal lows, keeping in view the world supplies and demand, it could be easily said the local lint may remain in active foreign demand in the months to come also, they added.

“Owing to US-led attack on Afghanistan, it is widely speculated that world buyers of lint may not rely on shipments from it but rather opt for more prompt and sure channels of supplies including Pakistan and India”, market sources said.

Already a number of buyers are in the local market despite the fact that Pakistan is now a front-line country after the US attack on Afghanistan, importers, notably from Sri Lanka, Bangladesh and some near and Far Eastern countries are securing supplies from here.

Moreover, the strong presence of the Trading Corporation of Pakistan which is buying lint cotton at Rs.1,855 per maund well above the prevailing rates to support the market and ensure fair price to the growers.

Official spot rates were quoted further higher by Rs.25.00, while New York cotton futures remained under pressure and fell further by 0.85 and 1.23 cents per lb at 31.10 and 32.04 for October and December settlements respectively.

Ready offtake was large comprising both Sindh and Punjab types as under:

SINDH TYPE: 800 bales of Tando Adam at Rs.1,550.00, 200 bales of Shahdadpur at 1,575.00, 1,000 bales of Oderolal at 1,600.00, 1,000 bales of Sanghar at 1,600.00, 200 bales of Sakrand at 1,60.00, 400 bales of Qazi Ahmed at 1,625.00, 400 bales of More at 1,625.00, 400 bales of Bhiria at 1,625.00, and 200 bales of Jam Goth at 1,625.00.

PUNJAB VARIETY: 200 bales of Bahawalnagar at 1,560.00, 400 bales of Chichawatni at 1,560.00, 600 bales of Mureedwala at 1,560.00, 200 bales of Bahawalpur at 1,575.00, 400 bales of Burewala at 1,600.00, 200 bales of Rajanpur at 1,625.00 and 200 bales at 1,650.00.