January 16, 2003	Thursday	Ziqa'ad 12, 1423

KARACHI, Jan 15: Firm conditions were again witnessed on the cotton market on Wednesday as ginners further raised their asking prices ahead of Pakistan Cotton Ginners Association’s phutti arrival figures for the fortnight ending January 15.

The interesting feature was that some of the spinners who perhaps have surplus stocks of lint more than their annual consumption needs sold about 2,000 bales to some private sector exporters at Rs1,940 to Rs2,075 depending on the quality of lint.

Floor brokers said the prevailing firmness and an increase in prices reflects there could be a major change in the market’s current posture after the announcement of phutti arrival figures.

Some leading ginners who have links with the figure collecting apparatus have already an idea about the size of the crop and are keeping to the sidelines awaiting the official announcement due during the next couple of sessions, they added.

“The pace with which the spinners and the mills are covering their forward positions show that leading among them also know the arrival figures may not be that surprising as it has been during the last fortnight and there could be a shortfall”, they added.

However, it is yet to be ascertained whether or not leading growers or ginners are holding on to their stocks to raise prices after creating pressure on ready supplies.

But market sources said the crop is in line with the initial projections and attributed the rise in prices partly because of higher world rates and partly to holding back of stocks by leading ginners.

Ginners who were worried over the large unsold stock of 2m bales some days back and were demanding the entry of the Trading Corporation of Pakistan to bail them out from the impasse of long inventory position are now a bit happy over the change in market conditions, dealers said.

Moreover, strong presence of exporters in the market is also considered a supporting positive factor, although their intake is reported to be modest, they added.

Official spot rates were further raised by Rs15 to Rs2,140 in line with the ready rates at which physical business is being transacted.

Ready offtake was active as till late in the evening about 10,000 bales changed hands as under:

SINDH VARIETY: 2,000 bales, Sanghar, mill to exporters at Rs1,940 to Rs2,075, 300 bales, Shahpur Chakkar at Rs1,975, 800 bales, Tando Adam at Rs2,125 purchased by an exporter and 2,000 bales, K-68, upper Sindh at Rs2,150 to Rs2,180.

PUNJAB TYPE: 800 bales, Bahawalpur at Rs2,175, purchased by an exporter, 400 bales, Ahmedpur East at Rs2,175 and 1,000 bales, D.G.Khan at Rs2,150.