November 13, 2002	Wednesday	Ramazan 7, 1423

KARACHI, Nov 12: Panic mill buying continued for the second session in a row on the cotton market on Tuesday as the tussle to corner the floating stock of fine lots at the current levels further intensified.

About 50,000 bales, valued at Rs500 million changed hands just in a session indicating that trading in cotton has assumed new dimensions, telling that the textile sector is now buoyant on the strength of higher exports of finished goods.

Perceptions of a substantial increase in exports to the US and European Union in the backdrop of increase in import quota and duty waivers on some items appear to be the chief stimulating factors behind the current panic mill buying, dealers said.

“I will not call it a cartel but certain leading textile groups have joined hands to grab the quality lots at the current levels to meet the rising export demand of finished goods”, they added.

The other contributory factor behind the current panic mill buying was said to be fears of further rise in prices owing to higher international rates, notably on the New York Cotton Exchange.

For the second session in a row bulk of the support remained confined to the quality lots from the Punjab ginneries, brokers said.

Unlike the previous two seasons when international prices were attractively low as compared to the local ones, spinners had imported substantial quantities but now at 50 cents an lb, imports may not be competitive this year at the higher rates.

However, despite strong buying, prices did not show corresponding rise and it perhaps goes to the credit of mills to contain prices below the Rs2,200 per maund mark despite heavy daily offtake, which in normal conditions should push prices higher.

Phutti prices remained on the higher side and average between Rs930 and Rs960 on the lower and higher side, according to official sources.

Official spot rates remained pegged at the last levels in line with those ruling in the ready section.

New York cotton futures showed fresh modest rise of 0.3 cents for the ruling December contract at 48.42 cents per lb, while the forward March fell by 0.5 cents at 50.36 cents per lb.

Ready business was fairly brisk totalling about 50,000 bales, the following being some of the big deals:

SINDH TYPE: 200 bales, each Jhole and Tando Adam at Rs1,945, 200 bales, Sanghar at Rs2,000, 400 bales, Shahdadpur at Rs2,000, 500 bales, each Gothki and Daharki at Rs2,150.

PUNJAB VARIETY: 1,000 bales, Sahiwal at Rs2,075 to Rs2,090, 1,000 bales, Kehror Pacca at Rs2,100 and Rs2,110, 1,000 bales each, Haroonabad, Faqirwali and Burewala at Rs2,100, 1,000 bales, Yazman at Rs2,125, 1,000 bales, Chichawatni at Rs2,075 to Rs2,085, 1,000 bales, Mian Channu at Rs2,080 to Rs2,085, 3,000 bales, Ahmedpur East at Rs2,150, 8,000 bales, Bahawalpur at Rs2,140 to Rs2,150, 2,000 bales, D.G.Khan at Rs2,125, 2,000 bales, Sadiqabad at Rs2,150, 3,00 bales, Rahimyar Khan at Rs2,125 to Rs2,150, 2,000 bales, Rajanpur at Rs2,150, 1,000 bales, Fazalpur at Rs2,150, 1,000 bales, Hasilpur at Rs2,125, 2,000 bales, Lodharan at Rs2,150, 1,000 bales, Fort Abbas at Rs2,125, 2,000 bales, Shah Jamal at Rs2,150, 1,000 bales, Khanpur at Rs2,150, 1,000 bales, Nurpur Nauranga at Rs2,150, 1,000 bales, Samundari at Rs2,100 and 1,000 bales, Shadan Lund at Rs2,125.