February 26, 2003	Wednesday	Zul Hijjah 24, 1423

KARACHI, Feb 25: Cotton market on Tuesday maintained a bullish outlook as ginners further raised their asking prices but spinners and mills remained active buyers irrespective of the continued price flare-up.

The interesting feature was that the big-lot business was the hallmark of trading as spinners lifted all the lots offered for sales at the highest price of Rs2,550 per maund without 15 per cent sales tax.

While the official rates committee made orderly increase of Rs15 per maund in the spot rates for an average quality of lint, in physical trading prices are heading to touch the high mark of Rs2,600 per maund without 15 per cent sales tax.

Prices on the New York Cotton Exchange suffered a fresh correction from the current highs owing chiefly to rolling of positions from the matured March contract to the ruling settlement of May. Though it also sustained a sympathetic fall of 0.97 cents per lb but stood firm at 56.62 cents per lb apparently eyeing the next chart level of 60 cents.

Floor brokers said the changing world cotton situation may not have an immediate relevance to the local price line, it certainly do when spinners think of import to make up the local crop shortfall.

“For the time being the local prices are essentially governed by the supply and demand factors in the backdrop of the lower than expected arrivals of phutti into the ginneries for the fortnight ended Feb 15,” they said.

However, as the final crop estimates are terribly lower than the rated mill demand of slightly above 12.5m bales the prevailing higher prices are more than justified.

But some cotton analysts think it was the panic mill buying, which is pushing lint prices higher daily though modestly. “Spinners may have their own crop ideas compiled through their own survey but they should have behaved according to market parlance rather than opting for panic buying.”

The cat is now out of the bag and question is being asked by the cotton trade who will “bell it” to contain the persistent price flare-up.

Ready offtake was active as till late in the evening about 15,000 bales changed hands, the following being some of the notable deals;

SINDH VARIETY: 2,000 bales, upper Sindh at Rs2.500, 400 bales, Rohri at Rs2,550 and 400 bales, at Rs2,500.

PUNJAB TYPE: 800 bales, Hasilpur at Rs2.550, 1,000 bales, Multan at Rs2,5225, 500 bales, Vehari at Rs2,550, 200 bales, Fazalpur at Rs2,500, 1,800 bales, (inferior lots) at Rs2,350, 5,000 bales, Bahawalpur at Rs2,500 and 1,000 bales, Yazman at Rs2,450.