June 4, 2002	Tuesday	Rabi-ul-Awwal 22,1423

KARACHI, June 3: Cotton prices on Monday showed a modest increase thanks to strong presence of exporters and spinners in the backdrop of reports of higher demand for textiles in the world trading centres.

After having fallen from the recent peak level of Rs1,650 per maund to Rs1,550 last week, official spot rates were upped by Rs25 per maund, indicating the world demand for both lint and value-added textiles is picking up, dealers said.

Owing to the strong presence of spinners and exporters, ginners have raised their asking prices by Rs25 to Rs50 per maund depending on quality but till late in the evening physical business remained at a low ebb as buyers did not offer to buy at the higher rates.

“There was a loud whispering on the market that leading spinners have found a cue about the unsold stocks lying with the ginners and are out to cover their positions at their own prices but ginners were not in obliging mood”, says a leading broker.

Ginners have raised their asking prices for the fine lots to Rs1,800 per maund and for inferior types from Rs1,250 to Rs1,500.

But some other say leading spinners have started panic buying to build-up long positions amid increasing fears of war with India and an expected pressure on ready supplies.

However, rebound in prices though meagre is welcomed by ginners amid hopes that market factors of supply and demand will finally prevail, allowing them to recoup some of the losses suffered mid-season.

“Spinners are worried over the rigid positions taken by India and the US about alleged incursions into occupied Kashmir, which could lead to war as Pakistan denies the charges”, says one floor broker “that is perhaps why they are in the market in a big way”.

However, he failed to define the optimism being expressed by the exporters as in case of war there could be disruption in physical shipments owing to shipping problems. In war-like conditions shippers generally suspend their daily or weekly callings for the consignments meant for the Karachi Port or the Port Qasim.

The Trading Corporation of Pakistan announced to buy 200 bales more from a Punjab ginner at Rs1,550 per maund on June 1, but there was no business in the ready section because of higher asking prices, dealers said.

Indications are that the market will react favourably to the final crop figures due to announced by the Pakistan Cotton Ginners Association (PCGA) possibly on Tuesday (today), which are said to be substantially lower than being speculated by spinners and exporters.