June 25, 2002	Tuesday	Rabi-us-Sani 13, 1423

KARACHI, June 24: Trading on the cotton market on Monday resumed on a firm note as spinners and exporters remained active buyers at the prevailing rates but physical business was slow.

After having imported well over a million bales during the current season up to April, spinners and mills may not be holding short positions but the important factor is that they still need fine lots to cover their forward sales of higher counts of cotton yarn, brokers said.

Moreover, market sources said ginners may not have an unsold stock of more than 0.3m bales in their godowns, which will mean higher prices in future when the tussle starts to grab it, they added.

Fine lots from the upper Sindh and southern Punjab cotton belts are now the bone of contention as leading spinners are after them irrespective of the asking prices.

In sympathy, inferior lots are selling about Rs.200 per maund higher around Rs.1,650 as compared to Rs.1,450 some weeks back.

Most cotton brokers feel ginners will now have an upper hand over the spinners and exporters as far as future price outlook is concerned prior to larger arrivals of the new crop.

The local prices could also fall from the current highs if the New York cotton futures react from the current seasonal highs on speculative selling.

“I don’t anticipate any softening in the local prices at least for the next couple of weeks,” claims a leading broker adding “the global shortage will continue to inspire bullish ideas here during the next couple of months.”

Meanwhile, the sowing of the new crop has been completed in the major cotton growing areas and the condition of the early sown crop is said to be good owing to warm weather and no major pest attack.

The resowing where necessary has also been completed, while reports reaching here indicate picking operations of phutti could be resumed late next month.

Some of the ginneries in the central Punjab start ginning operations in late July and early August after buying phutti from the lower Sindh growers.

Official spot rates remained pegged at the last close but in the ready section prices were a bit higher at which stray lots changed hands.

Ready business was light as till late in the evening about 2,500 bales changed hands as under: 200 bales, Sarari at Rs.1,700, 500 bales, at 1,720.00, 300 bales, Jhole at 1,650.00, 200 bales, Qazi Ahmed at Rs.1,660.00, and 1,000 bales, K-68 Sawgin Dharki at 1,900.