November 14, 2002	Thursday	Ramazan 8, 1423

KARACHI, Nov 13: Cotton prices on Wednesday remained stable as mills and spinners continued to cover their forward positions against the foreign sales of yarn mostly to Far Eastern importers.

Another 30,000 bales changed hands, the interesting feature was that prices were contained well below the Rs2,200 per maund mark as leading cartel of spinners declined to go above Rs2,250 per maund for fine lots.

Hectic mill buying also reflected that the hands are full as far as export orders for the current quarter ending Dec 31, 2002, are concerned and they are out to cover their forward positions apparently in a bid to maintain their competitive edge on the world markets, brokers said.

“We can’t take risk as far as our export commitments are concerned that too in a highly world cotton market”, says a leading spinner commenting on their current war of nerves to grab the floating stock of lint “prices could rise from the current level, having a negative impact on our export sales”.

During the last three sessions, spinners and mills have purchased well over 0.1m bales, sending signal among the growers and the ginners that the “cotton trade is moving toward a full circle”.

Floor brokers said indications are that mill consumption of the organized sector could touch the high mark of 1.3m bales during the current season and there are fears among some quarters that the crop figure may not match the total requirements of the local industry.

“Prices of lint could rise sharply higher from the current level at the end of the season as by that time the phenomenon of supply and demand will be fully clear”, they added “perhaps because of this perception spinners are not inclined to take even a technical breather.”

No one could deny the fact that battle of wits between the spinners and mills to grab the bulk of the fine lint is at its peak but it goes to their credit they are buying it at their mutually agreed prices. No one is inclined to breach the unwritten agreement as it ensure collective good for the industry as a whole, dealers said.

Official spot rates were again quoted unchanged at Rs2,100 per maund but New York cotton futures remained under pressure and fell by 0.85 and 0.70 cents per lb at 47.57 and 49.66 cents per lb for both the ruling December and the distant March contracts.

Ready offtake was large totalling about 30,000 bales, the following being some of the notable deals:

SINDH TYPE: 200 bales, Shahdadpur at Rs2,025, 400 bales, each Gothki and Daharki at Rs2,150.

PUNJAB VARIETY: 2,000 bales, Sadiqabad at Rs2,150, 3,000 bales, Rahimyar Khan at Rs2,150, 2,000 bales, Bahawalpur at Rs2,150, 1,00 bales, Lodharan at Rs2,150, 1,000 bales, Sahiwal at Rs2,075 to Rs2,100, 400 bales, Gojra at Rs2,075, 600 bales, Muridwala at Rs2,075, 2,000 bales, Bahawalnagar at Rs2,075 to Rs2,125, 1,000 bales, Burewala at Rs2,100, 1,000 bales, D.G.Khan at Rs2,125, 3,000 bales, Rajanpur at Rs2,150, 2,000 bales, Fazalpur at Rs2,150, 500 bales, each Hasilpur and Haroonabad at Rs2,125.