October 26, 2001	Friday	Shaba'an 8, 1422

KARACHI, Oct 25: Trading activity on the cotton market on Thursday remained relatively slow as spinners took another breather in a bid to push prices further lower.

But ginners appear to be in no mood to further lower their asking prices and stayed on the sidelines most of the time to avert further decline in prices.

Floor brokers said slowdown in spinner readytake was understandable as leading among them were following the world price line before resuming local buying.

The continued decline in world prices, notably the New York cotton futures, which are ruling below the 30 cent per lb level, has changed the cotton outlook at least for the near-term, they added.

“Spinners and mills now have a choice whether or not to buy the local stuff at the prevailing prices”, a leading broker claim, adding “they calculate the difference and then decide for which stuff to go, the imported or the local whichever is cheaper”.

The prevailing phenomenon seems to have taken steam out of the market at least for the near-term and until the price equilibrium is restored, the current impasse may continue, he adds.

The New York cotton futures were quoted further lower by 0.67 and 0.66 cents per lb at 29.09 and 30.75 cents per lb for both the ruling December and the distant March settlements, sending bearish signals elsewhere, notably to cotton producing countries.

Market sources said spinners were not in a hurry to cover their forward positions against cotton yarn sales as higher crop estimate had assured them comfortable supplies in the months to come.

They may play hide-and-seek game with the ginners having a little fear about any price flare-up despite the strong presence of the TCP in the market, they said.

The procurement target of a million bales of fine quality lint has been set for the TCP for the current season against which it is said to be making hectic buying at the fixed rate of Rs.1,855.00 for the fine and export quality lint.

It was perhaps in this background the official spot rates were lowered by Rs.25.00 maund in line with the ready rates.

Ready offtake was light as till late in the evening about 2,500 bales changed hands as under:

SINDH TYPE: 1,000 bales, Sanghar at Rs1,600.00, and 400 bales at 1,650.00.

PUNJAB VARIETY: 200 bales, Sahiwal at Rs1,625.00, 200 bales, Garah More at 1,650.00, 200 bales, Hasilpur at 1,675.00 and 200 bales, Alipur at 1,700.00.