February 15, 2002	Friday	Zilhaj 2, 1422

KARACHI, Feb 14: Quieter conditions prevailed on cotton market as spinners and mills again adhered to the sidelines apparently assessing the impact of TCP procurement operations on the price line.

But status quo was maintained as far as the price structure was concerned despite the fact that some of the ginners entertain bullish ideas.

Stray lots did change hands as some of the needy spinners remained active buyers at the prevailing prices, fearing increase in rates after the resumption of purchases by the TCP to support the falling lint market.

However, it seems unlikely that prices in physical trading could match that of those being offered by the TCP for parity reasons. As a result, that the TCP has purchased about 5,000 bales from the southern Punjab ginneries did not affect the market.

Floor brokers said there was a difference of about Rs200 per maund in the prices at which spinners are buying and those of the TCP and naturally the buyers will opt for the lower slab and that seems to have caused a considerable decline in the ready business since its entry.

Spinners still have to go a long way to line their annual consumption requirements of about 10 million bales, but they are not inclined to start panic buying to forestall any price flare-up, they added.

Spinners’ absence from the market was also attributed to perceptions of a comfortable supply position owing to a good crop of over 10 million bales. The late entry of exporters into the market also did not affect the supply position significantly as they so far have purchased a few thousand bales, dealers said.

“In the ultimate analysis supply and demand factors will prevail and who will be at the receiving end will determine the market trend,” they said.

Meanwhile, reports coming in from the southern Punjab ginneries indicate that growers are dumping the phutti after prices showed a slight improvement, thanks to the presence of TCP in the market.

For the last couple of sessions, official spot rates did not show any change, but in physical trading prices did some improvement, notably for the fine lots. The higher offered prices was said to be one of the reasons behind the increase.

Ready offtake was again modest as till late in the evening about 3,000 bales changed hands as under: 200 bales of Sanghar at Rs1,490, 2,000 bales, Alipur at Rs1,525, 200 bales, Bahawalpur at Rs1,550 and 500 bales of D.G. Khan at Rs1,550.