January 8, 2002	Tuesday	Shawwal 23, 1422

KARACHI, Jan 7: Trading on the cotton market on Monday resumed on a cheerless note as spinners kept to the sidelines most of the time and did not bid for any lot.

But reports coming from the southern Punjab cotton belt indicate that a leading group of spinners is seeking more supplies of the fine lots at the prevailing rate of around Rs1,800 per maund and some of the ginners obliged them, dealers said.

However, the details of lots in trade were not immediately available but local brokers claim about 7,000 bales changed hands at rates not confirmed by them.

A section of spinners was also said to be after inferior types for blending purposes, ginners held on to their stocks apparently awaiting the entry of exporters in the market, dealers said.

Market sources attributed the inconsistency in mill buying to technical factors including to keep ginners at their toes all the time never allowing them to raise their asking prices.

“But ginners are worried over the larger unsold stock and indulge in selling whenever spinners resume their buying operations”, they added.

During the last week ginners obliged spinners mostly at their bid prices in an effort to get out of the current impasse as huge amount of Rs20 billion is tied to their unsold inventories.

“Spinners are keeping a strict watch on the price line after maintaining a judicious balance between the supply and demand”, says a leading broker.

He said heavy fog in the major cotton growing areas of the Punjab has slowed down ginning operations, which could well mean pressure on ready supplies in the weeks to come but spinners are banking on the large unsold stocks, which may not allow any major change in the prevailing outlook.

Arrivals of phutti from the growers have also dried up as ginners are not accepting wet consignments drenched in rain caused by the melting fog.

On the ready counter, brokers reported stray enquiries from the local spinners but no physical business was reported.