September 7, 2002	Saturday	Jamadi-us-Saani28,1423

KARACHI, Sept 6: Cotton market on Friday resisted fresh decline as ginners held on to their positions to forestall further decline in prices. Trading was slow in the absence of buyers.

In an allied move leading growers also curtailed arrivals of phutti into the ginneries apparently in a bid to give the needed push to ginners to fight out an imminent collapse of the lint market.

“The role of grower and the ginner are complementary and their unity at the factory gate could hold the price line at a realistic level”, some of the leading ginners commenting on the persistent decline in phutti and lint prices over the last couple of days said.

As a result, most of the deals in the ready section in the Sindh lint were done about Rs100 higher as compared to the overnight rate at Rs1,950 as compared to Rs1,850.

“Prices could rise further from the current lows in the subsequent sessions as ginners and growers have decided to go slow until picking operations in the southern Punjab cotton belt resume”, one broker said.

Spinners who were active buyers during the last three sessions and lifted all the lots offered below Rs1,900, were not that enthusiastic and purchased some lots at a uniform rate of Rs1,950 maund.

Spinners, however, attributed fall in daily intake to international negative factors, notably lower cotton yarn prices and falling demand from the traditional trading partners from the Far East, notably Japan and Hong Kong.

“The current battle of wits between the ginners and the spinners will continue during the next couple of months also as each one of them will try to tilt the price balance in their respective favour”.

But much will depend on the size of crop in the backdrop of pest attack in some parts of the central Punjab cotton belt as slight decline in the projected production estimates could push prices sharply higher during the next two months, brokers said.

However, holding back of larger portion of picked up phutti by the growers could also play a positive role in determining the future price trend of lint, they added.

Official spot rates were lowered by Rs19 in line with Thursday’s sharp decline in prices but are expected to revised upward on Saturday.

Ready offtake was light as till late in the evening 3,000 bales changed hands, the following being some of the notably deals: 1,000 bales, Tando Adam at Rs1,950, 1,000 bales, Shahdadpur at Rs1,950 and 500 bales, Khipro also at same rate.