October 14, 2001	Sunday	Rajab 26, 1422

KARACHI, Oct 13: Cotton market on Saturday showed firm trend as spinners and mills continued to build-up long positions amid predictions of further increase in prices.

The market has progressively recovered from the seasonal lows of Rs.1,425.00, allaying fears of an imminent crash as some of the basic fundamentals have undergone change in the backdrop of the Afghan war, dealers said.

Most of the deals in physical trading were finalized around Rs.1,700.00 per maund depending on quality premiums and reflects that the lean period may be over, they added. But variety was a bit weak owing to quality factors.

But reports coming from the cotton belt indicate that the growers are yet to benefit from the big recovery in lint prices as phutti prices have not shown sympathetic increase.

Most of the growers are reported to be getting prices well below the official support rates despite active participation of the TCP in the market operations to ensure a fair return to the grower, floor brokers said.

However, revival of mill demand signals that the days ahead could be more productive for both the ginner and the grower.

“There is no significant change in the world textile demand but what seems to have lured spinners back in the market is the perception of pressure on supplies if the Afghan war drags on for two years as claimed by the US president”, says a floor broker.

But market sources said the direction of the market would clear after the picking operations of phutti resumed and the size of arrivals during the first picking.

It is, however, generally believed that the crop is in line with the official projections and reports of no major damage to the standing crop in any of the areas support this fact, they added.

Reports from the export front are fairly encouraging which is considered a supporting positive factor as the presence of exporters has accelerated the pace of mill buying, some dealers claim.

Some of the leading exporters have registered export contract for 1,440 bales with the Export Promotion Bureau on October 4 and 10, pushing the new crop sales to 3,000 bales.

Official spot rates were marked further higher by Rs.50.00, while New York cotton futures fell modestly by 0.16 and 0.25 cents per lb at 32.01 and 33.47 cents per lb for the maturing October and the ruling December contracts respectively.

Ready offtake was light as till late in the evening about 3,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 200 bales of Shahdadpur at Rs.1,700.00, 200 bales of Kandero at 1,700.00, 200 bales of Dadu at 1,700.00, 200 bales of Moro at 1,700.00 and 200 bales of Bucheri also at 1,700.00.

PUNJAB TYPE: 200 bales of Bahawalnagar at 1,650.00, 400 bales of Arifwala at 1,650.00, 400 bales of Mureedwala at 1,645.00, 400 bales of Gojra at 1,645.00 and 200 bales of Rajanpur at 1,700.00.