July 25, 2002	Thursday	Jamadi-ul-Awwal 14,1423

KARACHI, July 24: Cotton market on Wednesday showed firm trend as spinners lifted all the lots offered for sale by the ginners after having actively participated in the TCP tender.

New from the lower Sindh ginneries was traded as higher as Rs1,875 per maund with leading analysts predicting fresh increase in prices during the coming weeks.

Owing to increase in the export quota to the European countries and steady inflow of fresh orders from Japan for cotton yarn, spinners are said to be in the market in a big way to cover their forward sales of yarn.

“Spinners seem to be working on two-pronged strategy, aiming at to grab the entire unsold stock both from the ginners and the TCP and for good reason,” market sources said, adding “their hands are claimed by full with the export orders for cotton yarn and they are out to cover their forward positions.”

Another view is that the lint may not be available at the current rates during the next couple of weeks because of global shortage of cotton and spinners think “it is the best time to build-up long positions irrespective of larger arrivals of new crop on the price outlook”.

For the last couple of sessions, New York cotton futures are showing violent either-way movement under the cross-current of conflicting reports about the supply position in the coming months but each limit-fall follows the bull-run.

New York cotton futures were on Wednesday were quoted around 46.33 and 47.92 cents per lb for both the ruling October and the distant December settlements, off 1.21 and 1.16 cents per lb. But the next day they may rebound by the same amount.

Meanwhile, spinners have offered to buy almost all the lots of lint cotton against which the TCP has invited bids, the highest rate quoted by them being Rs1,805 to Rs1,921 for the lower quality and the lowest and highest rates for the fine varieties was quoted at Rs1,825 to Rs2,000, which local brokers claim an “attractive price in the prevailing world outlook”.

The TCP has also invited bids from the foreign buyers for another 30,000 bales on July 25, which is also expected to receive positive response.

Official spot rates remained pegged at the last close but most of the deals reported in the ready section were well above this rate.

Ready offtake was light totalling about 1,500 bales as under:

NEW CROP SINDH: 100 bales of Mirpurkhas at Rs1,850; 100 bales, Pithero at Rs1,860, 100 bales at Rs1,875; and 100 bales of Chichawatni at Rs1,875.

CURRENT CROP: 400 bales of Kheror Pacca at Rs1,800 and 400 bales of Mailsi at Rs1,900.