December 7, 2001	Friday	Ramazan 21, 1422

KARACHI, Dec 6: Cotton prices on Thursday slightly eased as ginners holding long unsold positions indulged in hasty selling despite an upward revision of over Rs300 per maund by the TCP in the procurement rates at Rs2,176 per maund from Rs1,856.

Most of the deals in the ready section were struck between Rs1,850 and Rs2,100 depending on quality, although fine lots were claimed to be the most sought-after stuff, dealers said.

The increase in lint support prices was effected by the TCP after the spot rates touched the high mark of Rs2,200 per maund. The step follows Tuesday’s massive panic mill buying and the consequent rise in ready rates to Rs2,200 per maund.

Although prices fixed by the TCP plus premium on fine lots are not in line with the international ruling rates and could work against the export interest of the spinners, official sources said “this is the only solution to support the market and dispose of large unsold stocks”.

“Mills and spinners buy lint at their own will and keeping in view their international export parity level of end-products but larger unsold stock of about 2 million bales lying in our ginneries means a great financial loss alone on bank charges account,” ginners claim.

Spinners say any increase in the official rates should provide a level ground to all the players in the cotton trade, of course, having an eye on the interests of trading partners but the current steep increase is not in line with the international rates and could work against their export projections.

But how many ginners could conform to the quality standards of the TCP and its mode of payment is not clear but market sources claim most among them will like to sell to spinners after prices rise from the current lows.

However, in physical trading most of the spinners tried to get out of their long positions after lowering their asking prices, having a negative impact on the overall price line.

Ready offtake was active as till late in the evening about 20,000 bales changed hands as under:

SINDH TYPE: 500 bales, Sakrand at Rs1,875 and 500 bales, Shadadpur also at Rs1,875.

PUNJAB VARIETY: 3,000 bales, Rahimyar Khan at Rs2,075 to Rs2,100, 2,000 bales, Rajanpur at Rs2,050 to Rs2,075, 2,000 bales, Sadiqabad at Rs2,050 to Rs2,100, 1,000 bales, D.G. Khan at Rs2,000 to Rs2,025.00, 1,000 bales, Bahawalpur at Rs2,050 to Rs2,075, 1,000 bales, Lodharn at Rs2,050, 400 bales, Chishtian at Rs2,000, 1,100 bales, Sahiwal at Rs1,970, 400 bales, Burewala at Rs2,050 and 200 bales, Depalpur at Rs1,925.