December 14, 2001	Friday	Ramazan 28, 1422

KARACHI, Dec 13: Cotton market on Thursday showed firm trend but physical activity failed to pick up as spinners again withdrew to the sidelines.

The activity was also affected by the absence of leading spinners and ginners as most of them prayed the whole night to seek God’s mercy in Shab-e-Qadr, dealers said.

Attendance in the market was, therefore, relatively thin until the afternoon and those who were present in their offices were not inclined to make bigger commitments.

Stray lots, however, did change hands direct between the ginners and the spinners in the Punjab cotton belt details of which are expected to reach here possibly be tomorrow, reports trickling here from the private sources claim.

Prices remained stable around the overnight level of Rs1,850 to Rs2,000 per maund for both Sindh and the Punjab varieties as spinners are not inclined to chase prices further higher.

But local floor brokers say the balance of price is tilting in the favour of ginners as the international cotton outlook has undergone a major change after the end of war in Afghanistan and the exit of Taliban.

“The sharp rebound staged by the New York cotton prices from the 20-year low of 28 cents to 38 cents per lb for the ruling May contract has altogether changed the world price outlook and the local lint could hardly be an exception,” brokers said.

The current standoff between the ginners and the spinners tells that both are adhering to their future price perceptions but only time will tell who is the gainer.

Market sources said the arrival figures of phutti for the fortnight ending Dec 15, would set the future direction of the market and the price trend.

But one thing appears certain that the import option of lint on which spinners were relying now may not be that competitive as by the time they may opt for the foreign lint, prices will shoot up to well over 40 cents per lb.

However, spinners claim about 0.3 million bales already purchases between 30 and 33 cents per lb are in the pipelines and will meet in part their second quarter demand.

Official spot rates were again quoted unchanged as there was no change in the quality premiums.

Ready offtake was light and was confined to some Punjab type done around Rs2,000 per maund.