April 4, 2003	Friday	Safar 1, 1424

KARACHI, April 3: Cotton prices on Thursday eased modestly as a section of ginners unloaded their long positions at the lower levels followed by rumours of higher than market expectation arrivals of phutti into the ginneries for the month of March.

A strong whispering in the market that the final arrival figures expected to be released by the Pakistan Cotton Ginners Association (PCGA) possibly by tomorrow are on the higher side of the earlier predictions.

The other negative factor, which prompted selling by the ginners was reports that it may not be the final figure and it will be announced by the first week of May.

Whether the market rumours about the higher figures are correct or inspired is not clear but they certainly unnerved the weak ginners who indulged in hasty selling, pushing prices from the peak level of Rs2,650 to Rs2,575 per maund for the fine variety from the upper Sindh.

Punjab type also showed wide fluctuations, between Rs2,590 on the lower side and Rs2,650 on the higher side, depending on the quality of lint in trade, dealers said.

The rumours were welcomed by the spinners who hastened to lift all the lots offered below Rs2,650 per maund amid hopes of further erosion in prices after the arrival figures are out, they said.

Official spot rates were also affected by the loud whispering as they were lowered after two weeks by the rate committee anticipating further decline in prices on the ready market.

But on the other hand reports from the world markets were bullish where lint is becoming expensive in response to war risk surcharge and fears of interruption in supplies because of Gulf war.

New York cotton futures rose further by 0.23 and 0.33 cents per lb at 57.95 and 59.32 cents per lb for both the ruling May and the distant July settlements respectively.

On the export front, private sector exporter sold 2,811 bales more to Bangladesh, Indonesian and Bahrain importers, the total foreign sales so far being 0.173m bales including 54,148 bales of the old crop.

Ready offtake was light totalling about 8,000 bales, the following being the some of the notable deals:

SINDH VARIETY: 1,000 bales, K-68, Daharki and Gothki at Rs2,575.

PUNJAB TYPE: 2,000 bales, Rahimyar Khan at Rs2,640, 600 bales, Khanpur at Rs2,650, 400 bales, Bahawalpur at Rs2,590 and 1,000 bales at Rs2,650 and 1,000 bales, Haroonabad at Rs2,600.