March 12, 2003	Wednesday	Muharram 8, 1424

KARACHI, March 11: Firm trend was again seen on the cotton market on Tuesday as leading spinners resumed their big-lot business amid fears of short supply owing to Ashura holidays.

Over 10,000 bales including some big lots above 5,000 bales changed hands at much higher rates, reflecting spinner concerns over the future supplies.

Some of the private sector exporters also resumed their covering purchases against forward sales of lint to foreign buyers but they were not inclined to bid above Rs2,540 per maund.

Floor brokers said delivery problems are there but the mills and spinners needing some fine lots for blending purposes with the polyester fibre were not inclined to take a breather and indulged in big-lot business.

Prices seem to have stabilized around Rs2,600 per maund without 15 per cent sales tax as ginners held on to their positions and sold only those lots, which fell in line with their parity levels, they added.

The arrival figures of phutti for the fortnight ending March 15, is keenly awaited both by the spinners and the ginners as they are expected to set the future market trend.

Although opinions about the size of the crop are still divided as official sources are not inclined to lower their estimate below the 10m bales mark but the spinners and the private survey conducted by the relevant private sector agencies claim the figure could hardly touch the higher mark of 9.8m bales.

However, the arrival figures will give a fair idea about the total size of the crop and an expected shortfall to be met through imports. Mill annual demand during the last two years had swelled to over 1.2m bales, and fears of a big gap between the supply and demand could push prices further higher, market sources said.

Meanwhile, reports coming from the southern Punjab cotton belt show that most of the ginneries had completed their seasonal operations and are in the process of shutting down their business. Some of them even have cleared their unsold positions at the prevailing higher rates.

The official spot rates were marked further higher by Rs10 to Rs2,535 per maund, although in the ready section most of the deals were done around Rs2.600 per maund.

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

SINDH VARIETY: 500 bales, from various stations at Rs2,540, purchased by an exporter and 5,600 bales, upper Sindh, Dharki, Gothki and Mirpur Mathelo at Rs2,500.

PUNJAB TYPE: 2,000 bales, Bahawalpur at Rs2,600, 700 bales, Khanewal at Rs2,600 and 1,000 bales, Rahimyar Khan also at Rs2,600.