May 24, 2003	Saturday	Rabi-ul-Awwal 21,1424

KARACHI, May 23: Physical business on the cotton market on Friday remained at a low ebb despite the fact that ginners have lowered their asking prices to clear the backlog of unsold stocks.

But spinners appears to be in no mood to make fresh commitments apparently expecting ginners to further lower their rates at least for the lower quality lots, dealers said.

“We don’t think ginners will further reduce their selling prices as they know supply and demand factor will finally prevail and they may not be losers in the bargain,” they added.

As a result, for the third session in a row ready offtake remained at a low ebb after spinners and mills have become more quality-conscious and are not inclined to bid above their export parity levels, they said.

Ginners had been holding on to their unsold stocks of 0.250m bales for the last couple of weeks and at no stage showed signs of tired bulls on the perception that spinners will remain at the receiving end till the close of the current season.

But weaker links among them, who are holding on to stray lots of inferior stuff hoping further rise in prices at the end of the season, seem to have lost patience and indicated to sell at the lower levels.

Unconfirmed reports claim some inferior lots did change hand at the lower levels details of which will possibly be available by tomorrow. However, leading ginners held on to their positions as far as the fine and contamination-free lots are concerned.

According to market sources, some of the leading spinners are willing to buy fine lots at the rate of Rs2,550 and Rs2,575, but ginners are sticking to their price idea of Rs2,600 per maund without 15 per cent sales tax.

Meanwhile, physical shipment of cotton to various countries up to May 15, rose to 0.217m bales, including 79,755 bales of the old crop, out of which the private sector shipped 0.137m bales and the Trading Corporation of Pakistan 97,755 bales, according to official figures.

Official spot rates were lowered by Rs25 at Rs2,485 per maund as some of the ginners tried to sell their odd lots before the new crop from the lower Sindh ginneries arrives on the market.

New York cotton futures on the other hand resisted fresh decline as both the ruling July and the new crop October settlements were quoted higher by 0.8 and 0.19 cents at 53.50 and 56.30 cents per lb, respectively.

Ready offtake was light as buyers and sellers price ideas failed to find a meeting ground. However, stray lots did change hands.