February 18, 2003	Tuesday	Zul Hijjah 16, 1423

KARACHI, Feb 17: Cotton market on Monday opened on a higher note as prevailing price war among the ginners and the spinners continued to have an adverse impact on physical trading.

Spot rates were further raised by Rs15 per maund by the official rate committee but in the ready section some of the deals were finalized well above them.

Floor brokers predicted trading on the market is expected to be normal possibly by the next couple of days as delivery problems have been minimized after the transportation of unsold animals back to their respective destinations is almost complete and cargo haulers have started booking cotton consignments on behalf of spinners for delivery in Karachi.

However, the transporters have raised the fare in line with the recent increase in diesel prices, although in some cases spinners are insisting on pre-hike rates, they said.

“The lint is becoming expensive each day for various reasons, notably higher asking prices by the ginners and the fare hike”, one spinner complains adding “export of textiles may be heading for a major crisis on both the counts”.

The falling ready business is reflective of the fact that there is a standoff about the selling prices between the buyers and the sellers as both have taken rigid positions in line with their parity levels. “Strong presence of the private sector exporters on the market has also accentuated the price situation”, market sources said “the fact that some of them are willing to pay more for fine lots to the ginners than the spinners aiding the current flare-up”.

A leading private sector exporter claims that the import orders from Bangladesh have virtually flooded the market and what is more important is that f.o.b prices being offered by them are fairly competitive.

During the last couple of weeks they have made larger forward deals, physical shipments against which are being made according to the deadlines, he says.

On Feb 10, private sector exporters sold 3,362 bales to Bangladesh mills and commercial importers, according to official figures.

Owing to higher asking prices, ready offtake was modest totalling about 8,000 bales as under: 200 bales, Gambat at Rs2,325, 200 bales, Khanpur Mehar at Rs2,365, 400 bales, at Rs2,390 and 6,000 bales, Rahimyar Khan at Rs2,400.