November 29, 2001	Thursday	Ramazan 13, 1422

KARACHI, Nov 28: Cotton market on Wednesday showed firm trend as revival of mill demand after a couple of lean sessions encouraged ginners to increase their asking prices.

Most of the deals in the ready section were done at Rs.1,825 per maund on the lowers side and Rs.2,100 on the higher side depending on quality of lint in trade.

As a matter of fact, Tuesday’s heavy mill buying, heralding the end of standoff between the ginners and the spinners over the recent price hike seems to have tilted the balance in favour of the former, dealers said adding Tuesday’s big haul of 25,000 bales reflect that spinners now are not inclined to take further risks.

This perception was also reinforced by the upward revision of official spot rates by Rs.25 after a decline of Rs.125 per maund by the committee.

Moreover, the warning from the TCP that it will re-enter the market to support the price of phutti also forced spinners to resume normal market operations and that was well-reflected in Tuesday tally of 25,000 bales, brokers said.

“The lint may not be in short supply during the coming months, it will certainly be a bit expensive owing to conflicting reports about the size of the crop and the extent of damage,” market sources said.

They said the persistent rise in New York cotton future prices has altogether changed the world cotton outlook and spinners have noted the change and opted for the local stuff in a big way.

“The alternate source of supply from the foreign markets is now too expensive as the New York cotton futures are heading to hit the coveted level of 40 cents possibly before the year is out,” they said adding “spinners are not that fool to await miracles and may not buy the local stuff still a bit cheaper.”

New York cotton futures were quoted further higher 0.82 and 0.66 cents per lb higher at 37.12 and 38.15 for both the ruling March and the distant May settlements, reflecting a pick up in world demand.

Ready offtake was active as till late in the evening about 10,000 bales changed hands, the following being the notable deals;

SINDH TYPE: 1,500 bales, Moro at Rs.1,850.00 and 400 bales, Sanghar at 1,825.00.

PUNJAB VARIETY: 1,600 bales, Bahawalnagar at Rs.1,900.00, 2,000 bales, Rahimyar Khan at 2,100.00, 1,000 bales, Sadiqabad at 2,100.00, 1,000 bales, Multan at 2,100.00, 500 bales, Rajanpur at 2,050.00, 200 bales, Arifwala at 1,850.00, 200 bales, Chichawatni at 1,850.00, 400 bales, Mian Channu at 1,900.0, 200 bales, Burewala at 1,850.00 and 200 at 1,925.00.