June 4, 2003	Wednesday	Rabi-us-Sani 3, 1424

KARACHI, June 3: Cotton market on Tuesday lacked normal trading interest as spinners remained conspicuous by their absence despite reports of falling unsold stocks with the ginners.

According to figures available from the Pakistan Cotton Ginners Association (PCGA) unsold stocks of lint lying with the ginners up to June 1, has fallen to only about 75,000 bales, barely enough for a month’s consumption of the mills.

However, spinners appeared to be a little worried over the supply position as leading among them are relying on the imported stuff,while their weaker links are pinning hopes on the early arrivals of new crop from the lower Sindh ginneries.

Floor brokers attributed the spinners absence from the ready market partly to the announcement of new fiscal measures in the next year budget possibly on June 7.

“How the new taxation steps will aid the textile sector in boosting exports are expected to guide the future direction of the cotton market,” they said.

The current relatively quieter condition prevailing on the cotton market as far as daily physical business is concerned reflects that despite being terribly short of their annual lint consumption needs, spinners are not worried and enter the market according to their priorities, they said.

Barring 75,000 bales, mills and spinners had already purchased the entire total crop of 9.7m bales and together with the carryover stocks the total supplies of lint come to about 10m bales.

Added to it is the imported stuff of 0.829m bales imported from various sources from August last up to the third week of May this year. That means that spinners and mills have in their hand total supplies of about 11m bales, which ensures smooth sailing for them until the new crop arrives on the market during the next month.

Moreover, the recent decline in world prices to around 50 cents per lb has further enhanced their import capability, which in turn speaks eloquently about their absence from the local market for the last couple of weeks.

Official rates remained pegged at the last levels in the absence of ready business, while New York cotton futures fell by 0.46 and 0.52 cents per lb at 50.12 and 53.08 cents per lb for both the ruling July and the distant October settlements.

Although some brokers reported stray business in the ready section but it could be confirmed from official sources or the leading brokers.