January 24, 2003	Friday	Ziqa’ad 20, 1423

KARACHI, Jan 23: Cotton market on Thursday showed firm trend as spinners resumed their covering operations against foreign sales after taking a technical breather for the last two sessions but ginners did not lower their asking prices.

A fair amount of business was reported after last two days relative calm at mostly around the ginners asking prices and spinners were obliged to follow the line of ginners future supply and demand perceptions.

Floor brokers said the current price war between the contenders will continue at least till the next phutti arrival figures due early next month as ginners will continue to cash in on the whispering of a possible crop shortfall.

An idea of ginners holding capacity may well be had from the fact that they were not inclined to sell central Sindh lower staple lint below Rs2,025 per maund. Some of the fine types were sold between Rs2,115 to Rs2,175.

“The market is certainly heating up in the backdrop of an expected pressure on local supplies during the next couple of months and worried spinners and mills are trying to adjust themselves according to the developing scenario”, brokers said.

The recent persistent decline in the world cotton rates despite reports of short crop in the major producing countries, has raised hopes among the spinners of competitive prices in the weeks to come, they added.

But the current fall in their daily intake is reflective of the fact that they are not willing to go beyond the price level of Rs2,300 per maund for fine lots, they said.

Meanwhile, reports coming from the southern Punjab cotton belt indicate growers who are still holding on to their unsold stocks of phutti are getting a competitive price above Rs900 per 40-kg against the official price of Rs800.

The increase in average phutti prices is well-reflected in the lint, which is being expensive each day despite a lot of spinner manoeuvring to contain them, dealers said.

Official spot rates were firmly held at Rs2,200 per maund but New York cotton futures maintained their downward drift and fell further by 0.45 and 0.32 cents at 49.51 and 53.48 cents per lb respectively on renewed speculative selling.

Ready offtake was modest as under:

SINDH TYPE: 1,000 bales, each Bandhi and Nawabshah at Rs2,115, 800 bales, upper Sindh K-68 at Rs2,300, 400 bales, Kot Lalu at Rs2,175, 200 bales, each Sanghar and Shahpur Chakkar at Rs2,025.

PUNJAB VARIETY: 2,000 bales, D.G.Khan at Rs2,225 to Rs2,250 and 1,000 bales, Bahawalpur at Rs2,230 to Rs2,275.