January 13, 2002	Sunday	Shawwal 28, 1422

KARACHI, Jan 12: Trading activity on the cotton market on the weekend session remained light as spinners did not oblige ginners despite the fact that they have further lowered their asking prices.

In physical trading most of the deals were finalized between Rs1,725 and Rs1,750 depending on the quality of lint in trade, which was lower than previous average rate of Rs1,800 per maund.

However, exporters continued to lift inferior lots offered by the ginners against their forward sales, but their presence did not prove a market factor to tilt the balance in favour of the ginners, dealers said.

“Exporters seem to be in no mood to join a price war with the spinners for obvious reasons and mostly played safe, lifting only inferior lots,” they added.

But the situation could change during the next couple of weeks after their foreign partners ask them to buy on their behalf medium staple length varieties, known here as fine type and that could boost ginner morale and worry spinners.

The pent-up demand from the leading export houses depending their offered prices to their foreign trading partners from the near and Far East could end the current dullness whenever it chooses to cover positions against the forward sales.

The future cotton outlook for the near-term appears bleak and until foreign situation improves and spinners start receiving orders for yarn and cloth, the current sluggishness may be prevailing, brokers said.

They said some of the big spinners groups were awaiting the crash of the market as huge unsold stocks could force ginners to indulge in hasty selling and the consequent further decline in prices, they added.

But ginners are anticipating the re-entry of the TCP, whose high-ups are watching the situation from the outside and are expected to launch a rescue operation to bail out them from the current impasse if the current sluggishness persists for an indefinite period.

The TCP has so far purchased about 0.230m bales, a part of which has already been sold to foreign buyers between 30 and 36 cents per lb through a couple of international tenders.

Ready business was modest totalling about 7,000 bales, the following being some of the notable deals: 200 bales of Akari (Sindh) at Rs1,725, 1,000 bales, Rahimyar Khan at Rs1,725 to Rs1,750, 400 bales at Rs1,675, 500 bales, Sadiqabad at Rs1,750, 800 bales, Burewala at Rs1,300, 400 bales, Chishtian at Rs1,550 and 400 bales of D.G. Khan at Rs1,600.