May 17, 2003	Saturday	Rabi-ul-Awwal 14, 1424

KARACHI, May 16: Cheerless trading conditions were witnessed on the cotton market on Friday as both the buyers and the sellers failed to find a meeting ground partly because of a short session.

Physical business, therefore, remained at a low ebb on the local market but reports coming from the southern Punjab cotton belt reported some lots did change hands above Rs2,500 depending on the quality of lot involved.

Floor brokers said further decline in New York cotton futures after the release of latest production data, indicating an increase of 0.7m bales in the US, has raised hopes of an identical fall in the local prices.

New York cotton futures suffered a fresh fall of 0.76 and 0.75 cents at 53.98 and 56.70 cents per lb in both the ruling July and the distant December settlements after the reports of increase in production reached the market.

But there was no change in the local prices as ginners were not inclined to lower their asking prices amid hopes that lower unsold stock of about 0.250m bales is not a problem to sell before the new crop from the lower Sindh ginneries arrives on the market.

Moreover, world prices ruling above the 50 cents per lb level may not be that attractive for the spinners as leading among them will finally opt for the local stuff in the final stages.

“The battle of wits between the spinners and the ginners is at its peak over the price but balance of the scale seems to be tilting in favour of the latter”, brokers said.

Meanwhile, reports coming from the cotton belt indicate that the growth of the early sown cotton is normal in the lower Sindh cotton belt and there are no reports of pest attack because of extremely hot weather.

On the other hand sowing of new crop in the upper Sindh and the southern Punjab cotton belt is said to be in full swing, while in some part of the central Punjab it has already been completed.

Market sources said if the current weather conditions prevailed during the next couple of weeks also, it will be beneficial for the new crop as hot weather kills insects and ensures savings for the farmers on pesticide account.

Official spot rates were firmly held at the previous level of Rs2,500 per maund without 15 per cent sales tax as ginners were not inclined to lower their asking prices.

Ready offtake was light as till late in the evening about 2,000 bales from the Southern Punjab ginneries changed hands.