September 4, 2002	Wednesday	Jamadi-us-Saani25,1423

KARACHI, Sept 3: Cotton market on Tuesday remained unsettled as reports of steady arrivals of phutti both into the Sindh and the Punjab ginneries kept ginners at their toes throughout the session.

The new crop lint, which came on the board on Monday at the higher rate of Rs.2,035 per maund was quoted lower by Rs.35 at Rs.2,000 as some of the ginners hastened to sell in part their long positions fearing further fall.

Floor brokers said apart from larger arrivals, the other negative factor is that most of the growers are selling their phutti on the cash basis and demand payments just after delivery of stocks in the ginneries.

Ginners have, therefore, no option but to sell lint after adding their overhead charges, which in turn keeps the market volatile as spinners take as nervous selling.

But those ginners who are inclined to take risks and have the holding capacity do not follow the smaller ones ,which in turn avert any major change in the ruling prices.

“But I don’t think the current price level of above Rs.2,000 per maund could be sustained during the next couple of sessions as reports of larger arrivals could unsettle it if any one of the weaker links gives in,” says a leading broker.

The absence of exporters from the market because of export parity reasons was another, could well prove, negative factor as their absence is generally exploited by the spinners.

Meanwhile, spinners whose daily intake is far below the normal figure claim that sailing on the export front are not that encouraging as lower yarn prices have curtailed our profit margins.

A considerable decline in mill purchases at this time of the season is reflective of the fact that export sales for the quarter ending Sept 30, 2002 are below the target, which in turn has affected their market operations for the near-term.

On the export front, a private sector exporter has registered an export sale contract for 916 bales, with the Export Promotion Bureau on Aug 31. The total foreign sales rose to 0.336m bales up to Aug 31, against which physical shipments of 0.232m bales have already been made both by the TCP and the private sector.

Ready business was light as ginners held on to their positions owing to lower prices being offered by the spinners. As a result, about 3,000 bales, all from the Sindh ginneries changed hands, the following being some of the notable deals: 1,000 bales, Sanghar at Rs.2,015 to 2,025, 400 bales, Tando Adam at 2,025 and 800 bales, Mirpurkhas at 2,000.