October 22, 2002	Tuesday	Sha’aban 15,1423

KARACHI, Oct 21: Physical activity on the cotton market on Monday slowed down as spinners were not inclined to make bigger commitments after the Punjab ginners raised prices of fine quality lint.

But in Sindh, prices eased modestly from the recent highs owing to reported low micronaire of the lint being offered by the central Sindh ginners.

However, there are no alarm bells from any of the quarters associated with the cotton trade about the ruling prices, although the absence of exporters from the market apparently for parity reasons worries ginners and growers.

Some of the leading ginneries having larger unsold stocks than the normal figure at this time of the season are a bit worry as huge amounts are tied to them, which have limited their daily buying capacity of phutti.

Floor brokers said ginners needed an enormous liquid funds to clear growers payments against the spot deals. Unlike the previous seasons, growers are not dumping phutti into the ginneries on unfix basis because of an uncertain future price outlook and are selling it mostly on cash basis.

Trading in Sindh lint resumed around Rs1,990 per maund but progressively fell to Rs1,935. But even the lower levels failed to attract spinners whose main focus now has been shifted to the Punjab lint being offered at uniform rate of Rs2,025 per maund.

Phutti prices on the other hand remained firm as growers are holding back stocks in a bid to keep prices around the current levels, dealers said.

Phutti prices in the central and the southern Punjab cotton belt ruled firm between Rs850 and Rs925 on the lower and higher side, respectively. Some contamination-free lots supplied to model ginning factories in the southern Punjab cotton belt fetched the highest price of Rs940 per 40 kg, market sources said.

They said prices of both phutti and lint were stable around the current levels and apparently suit to all the partners in the cotton trade, including growers, ginners and spinners.

Official spot rates were firmly held at the last close, although in the ready section most of the deals were finalized on quality basis.

Ready offtake was relatively slow as till late in the evening about 6,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 200 bales of Shahpur Chakkar at Rs1,990; 200 bales, Sanghar at Rs1,970, 200 bales at Rs1,975 and 200 bales at Rs1,990; 200 bales, Shahdadpur at Rs1,935; and 200 bales from Tando Adam at Rs1,940 and 200 bales at Rs1,935.

PUNJAB TYPE: 600 bales from D.G. Khan at Rs2,025; 200 bales, Burewala at Rs2,025; 200 bales, Mian Channu at Rs2,025; and 400 bales of Patoki also at Rs2,025.