October 24, 2001	Wednesday	Shaba'an 6, 1422

KARACHI, Oct 23: Cotton prices on Tuesday rose further as spinners were not inclined to give free hand to the Trading Corporation of Pakistan to lift bulk of the premium lots to be sold to their immediate world competitors.

The battle of wits between the spinners and the TCP appears to be at its peak as the latter is out to buy a million bales, the target set for it by the government, as early as possible.

Dealers said as the TCP is offering higher price to the ginners as compared to the prevailing market rates (Rs.1,855 per maund), for the fine types sellers prefer to be in its fold.

Spinners and mills being the first buyers on the other hand, and are reluctant to go beyond their export parity levels for the value-added textiles as they have to sell their products on the world markets at competitive rates, they added.

On Tuesday they purchased another 12,000 bales, but well below the TCP offered price of Rs.1,855, the highest being Rs.1,800 per maund.

Floor brokers said most of the spinners complain that the TCP purchase prices are on the higher side as compared to the ruling world prices, and may not be in a position to get a fair price for its stocks if the world markets did not rebound from the current lows.

But the TCP sources claim their main objective is to support the local market and ensure a fair price to the growers for their phutti. The buffer stock of a million bales, which the TCP is trying to build up at the current could also help mills and spinners if there is a pressure on supplies at the fag-end of the season, they added.

Meanwhile, exporters have registered foreign sale contracts for 1,430 bales, with the Export Promotion Bureau sold to Indonesia, Thailand, Taiwan and Bangladesh. The total of foreign sales since the beginning of the new season from Sept 1, 2001 rose to 10.913 bales, comprising 7,265 bales of the old crop and 3,648 bales of the new crop.

During the same period 70,130 bales of long staple lint were also imported from various sources for blending purposes to produce higher counts of cotton yarn, official sources said.

Official spot rates were further raised by Rs.25 per maund, while New York cotton futures stayed easy, falling by 0.74 and 0.89 cents per lb for both the ruling December and the distant March settlements at 29.81 and 31.65 cents per lb respectively.

Ready offtake was active totalling about 15,000 bales, the following being some of the notable deals reported by the Karachi Brokers Committee:

SINDH TYPE: 1,000 bales, Sakrand at Rs. 1,750.00,200 bales, Nawabshah at 1,750.00 and 200 bales, Setharja at 1,750.00.

PUNJAB VARIETY: 1,600 bales, Sadiqabad at Rs.1,800.00, 1,000 bales, Bahawalpur at 1,800, 400 bales, Rahimyar Khan and Khanpur at 1,800, 1,600 bales, D.G.Khan at 1,750 to 1,775.00,1,200 bales, Rajanpur at 1,775, 200 bales, each Khanewal and Hasilpur at 1,775, 200 bales,Haroonabad at 1,765, 200 bales, Burew