January 10, 2003	Friday	Ziqa’ad 6, 1423

KARACHI, Jan 9: Cotton prices on Thursday remained stable around the previous level in the absence of hasty selling from the ginners despite falling mill demand.

Ginners and spinners appeared to be locked in price war as both have taken rigid positions over the competitive rates that suit the both, the former on the local market and the latter on the export front.

“The major casualty of the rigid stand is the daily business, which has fallen to a modest proportions during the last couple of sessions,” brokers said.

“It is a no-win position as both the ginners and the spinners have a complimentary role to play and no one between them could stay out of the market more than a couple of days,” they added.

But some insiders claim leading spinners are very much in the market and making extensive buying direct from the ginners around the prevailing rates depending on the quality of lint in trade.

The lower figures of ready mill intake being supplied to Karachi Cotton Association (KCA) by the broker advisory committee do not reflect the full picture of the ready business. However, the deals do give a fair idea of the price at which the business is being done in the cotton belt.

According to market sources, leading spinner groups have already resumed their moping operations to corner the fine quality lint at a premium, which they need to cover their forward sales of higher counts of cotton yarn for the foreign buyers.

They said the ruling prices were attractive enough as compared to the world markets and spinners were fully aware of this fact but were indulging in tactical move to outwit ginners in a bid to push price lower.

But exporters are not inclined to miss the current market and making fresh export deals slightly above the 40-cent per lb mark. During the last couple of days, they have sold 7,580 bales to Indonesia and Bangladesh, and had sold a big consignment of 2,850 bales to Bahrain, an untraditional buyer of local lint.

Official spot rates were held unchanged, while New York cotton futures rose 0.57 and 0.44 cents per lb at 51.74 and 55.19 cents for both the ruling March and the distant May contracts, respectively.

For the second session in a row, ready offtake was light totalling 5,000 bales, the following being some of the notable deals: 1,000 bales, K-68 sawgin, Dharki at Rs2,140 and 300 bales, Sanghar at Rs2,025; 400 bales, Pull Chatha at Rs2,175; 1,000 bales, Rahimyar Khan at Rs2,150; 1,600 bales, Chishtian at Rs2,025; and 400 bales, Sadiqabad at Rs2,150.