February 23, 2003	Sunday	Zul Hijjah 21, 1423

KARACHI, Feb 22: Cotton prices on Saturday rose further as haunted by fears of short supply spinners and mills were not inclined to take even a technical breather.

For the first time after over a decade, the official rate committee raised the spot rates above Rs3,007.80 per 40 kg and to Rs2,810.00 per maund, including 15 per cent sales tax. The net rise over the day was of the order of Rs20.

But in physical trading, fine lots are being sold well above these peak levels as by now the ginners have correctly read the future supply and prices outlook and are dictating the market trend.

“Spinners seem to have been sandwiched between the two equally negative options,” says a broker commenting on the prevailing cotton trade. “If they opt for fresh buying ginners raise their asking prices and if they withdrew to the sidelines exporters fill in the gap.”

Market sources said while the private sector exporters are in the market and lifting modest number of bales at the prevailing rates why not the spinners after adding value to the lint.

For the last couple of weeks exporters are active on the market and covering their forward positions against sales to foreign buyers at rates in line with the spinners bids.

“Strong presence of Bangladesh and some Far Eastern importers on the market has altogether changed the price outlook,” spinners complain, adding “how they are selling it to foreign buyers at a competitive rates is hard to fathom.”

The spinners’ mad rush to cover forward positions at the prevailing rates appeared to be justified as they have to keep the wheels of the textile industry moving.

New York cotton futures on the other hand remained under pressure and suffered fresh fall ranging from 0.53 and 0.75 cents per lb for both the ruling May and the maturing March settlements at 50.57 and 57.59 cents per lb, respectively.

On the export front, the private sector exporters have registered export contracts for another 1,530 bales, sold to Indonesia and Bangladesh importers, the total new crop sales being 71,560 bales.

Ready offtake was light owing to higher asking prices and till late in the evening the secretary of Karachi Cotton Brokers Committee, Naseem Usman has reported the following deals:

SINDH VARIETY: 1,000 bales from Moro at Rs2,475 and 1,000 bales of Khairpur at Rs2,500.

PUNJAB VARIETY: 400 bales from Rahimyar Khan at Rs2,500 and 2,000 bales of Khanpur also at Rs2,500.