October 4, 2002	Friday	Rajab 26, 1423

KARACHI, Oct 3: Cotton prices on Thursday tended further lower as ginners again indulged in hasty selling followed by reports of steady arrivals of phutti into the ginneries and fears of a pre-election weak market.

Trading resumed on the higher side as early in the session some of the deals were finalized above Rs2,000 per maund in central Sindh variety. But later as the selling pressure build-up prices fell from the early highs as some of the deals were done around Rs1,915.

“Both the grower and the ginner appear to be in a bit haste to get out of their long positions well before the election day”, says a leading broker “there is unknown fear among the cotton traders about the post-election scenario and everybody is inclined to keep his forward positions clear”.

In normal pre-election sessions, prices generally appreciate amid fears of short supplies followed by a brief interruption in picking operations of phutti.

Cotton analysts said the phenomenon of low and high micronaire continue to haunt most of the spinners and mill owners as it affects the quality of the end-products.

“Those who have to sell their products on the world markets take an extra care about the lint, which they want process into final product as a good or bad price is tied to it”, they added.

But some others said owing to an uncertain future price outlook growers are not inclined to hold long positions and prefer to keep clear of the ready stocks well in time.

The interesting feature was that the local prices have, for the time being, no relevance to the prevailing world prices and are being mostly guided by the local factors including the holding capacity of those who are involved in cotton trade, market sources said.

The New York cotton futures, for instance rose to pre-reaction levels, reflecting a major change in the world price outlook but on the other hand local are on the declining path for the last couple of days, they added.

Both the maturing October and the ruling December settlements were quoted higher on Wednesday by 0.81 and 0.50 cents per lb at 44.20 and 45.99 cents respectively, which is close to seasonal peak level.

Official spot rates were, therefore, further lowered by Rs20 at Rs1,950 per maund depending on quality of the lint.

Ready offtake was moderately active as till late in the evening about 5,000 bales, changed hands as under:

SINDH TYPE: 1,600 bales, Nawabshah at Rs2,025, 400 bales, Khairpur at Rs2,000, 200 bales, at Rs1,950, 500 bales, Mirpurkhas at Rs1,915, and 400 bales, Tando Adam at Rs1,970.

PUNJAB VARIETY: 200 bales, Pir Mahal at Rs1,900, 200 bales, Duniyapur at Rs1,950, 200 bales, Gojra at Rs1,950, 200 bales, Muridwala at Rs1,950,

200 bales, Bakhar at Rs1,915 and 200 bales, Germa Raja at Rs1,915.