KARACHI, Jan 18: Cotton market on Friday showed quiet trend as larger than expected arrival figures of phutti into the ginneries allowed spinners to take a technical breather.

Most of the leading spinners and mills kept to the sidelines after the Pakistan Cotton Ginners Association (PCGA) released arrival figures for the fortnight ended Jan 15, 2002, allaying fears of short supply.

“After having made an extensive buying during the last couple of sessions spinners withdrew from the market on the perception that prices could fall further owing to hasty selling by ginners”, brokers said.

According to PCGA arrival figures, about 8.5 million bales equivalent phutti have reached the ginneries, out of which mills and spinners have purchased 6.239 million bales, leaving an unsold stock of over 2 million bales with the ginners.

Out of the total the Trading Corporation of Pakistan (TCP) has purchased 0.125 million bales and exporters only 11,000 bales, while buying is also lower by about 0.2 million bales as compared to last year.

The steady arrivals, notably during the last three weeks has cut the deficit from the earlier 28 per cent to only 6.43 per cent, indicating that owing to late sowing in some of the areas because of irrigation water shortage, growers may still be holding on to their long unsold positions, dealers said. That seems to have encouraged spinners to stay away.

“What seems to have ensured comfortable supplies till the end of the season and at competitive prices was larger than expected arrivals indicating that leading growers are still holding sufficient stocks of phutti to sell them at higher rates”, spinners say.

Prominent growers are said to have held on to their stocks after prices of phutti fell from the seasonal highs of Rs1,000 to around Rs800, but since then there is no improvement as lint prices are declining in line with the international parity levels.

Floor brokers said spinners are expected to keep to the sidelines for a couple of sessions in a bid to unnerve ginners hoping consequent selling at the lower rates.

Owing to the absence of spinners who stayed away expecting further decrease in prices, no ready business was reported by the brokers. The following are some of the deals done late on Thursday evening:

SINDH TYPE: 2,300 bales, Qazi Ahmed at Rs1,740 on credit, 200 bales, Dadu at Rs1,600, 400 bales, Nawabshah at Rs1,720 on credit, 200 bales, Kandeiro at Rs1,600, 200 bales, Sakrand at Rs1,660, 1,000 bales, Bhiria at Rs1,750 on credit and 4,000 bales, Jhole at Rs1,775.