November 6, 2002	Wednesday	Sha’aban 30,1423

KARACHI, Nov 5: Cotton prices remained firm around the overnight levels as ginners held on to their positions rather than indulging in hasty selling despite larger unsold stocks lying in their godowns.

Central Sindh variety was again traded between Rs1,955 to 1,975 per maund depending on the quality of lint in trade, while Punjab type remained stable between Rs2,000 to 2,100.

Unlike the previous sessions, mill demand picked up after the Punjab ginners completed their job of monthly fixation of phutti prices with the growers, which in turn triggered fresh buystops by the spinners.

Floor brokers said the larger arrivals of phutti for the fortnight ended Oct 31, seem to have allayed spinners fears of a short crop as being projected by some quarters and indications are that they are expected to remain active in the ready market, of course, keeping a watch on prices.

A considerable slowed down in physical trading witnessed over the last couple of sessions reflects that the spinners now will not follow the current strategy until the second picking of phutti completes in the southern Punjab cotton belt, they added.

Cotton analysts said the limit-gain in New York cotton futures at 49.13 and 50.67 cents per lb, up 2.22 and 1.81 cents per lb in both the ruling December and the distant March settlements tells a different story, which finally could tilt in favour of the ginner and the grower.

“The 50-cent level, attained after several years could mean anything to world markets during the next couple of weeks and the local market could hardly be an exception”, they added.

The sharp rise reflects a short world crop in the major growing countries of China and India and could push prices further higher in the coming weeks.

“If Pakistan harvest a third consecutive bumper crop during the current season also it could well lead to boom conditions in the textile industry, heralding a beginning of bullish cycle for the next five years”, they said.

It was perhaps in this background that the official rates were held unchanged at the overnight levels.

Ready offtake was large totalling 15,000 bales, the following being some of the notable deals:

SINDH VARIETY: 400 bales, Shahdadpur at Rs1,965, 200 bales, Shahpur Chakkar, at Rs1,975 and 400 bales, Sanghar at Rs1,965 to 1,975.

PUNJAB TYPE: 1,000 bales, Lodharan at Rs2,100, 4,000 bales, Ahmedpur East also at Rs2,100, 1,000 bales, Sadiqabad at Rs2,125, 1,000 bales, Khanpur at Rs2,100, 400 bales, Burewala at Rs2,075, 1,600 bales, Rahimyar Khan at Rs2,125, 1,000 bales, Chistian at Rs2,100, 200 bales, Vehari at Rs2,100 and 1,000 bales, Bahawalpur at Rs2,100.