June 12, 2003	Thursday	Rabi-us-Sani 11, 1424

KARACHI, June 11: Cotton prices on Wednesday suffered a decline of Rs15 per maund as tired ginners tried to lure spinners back on the market but they appear to be in obliging mood.

A virtual absence of spinners and mills from the market for the last couple of weeks did not outwit ginners as they held on to their positions hoping the former will resume their covering operations to add to their falling stocks.

“But their long absence from the market now seems to have tested their patience and weaker among them are now at the receiving end as some of them had lowered their asking prices to get out of the impasse of a slack demand,” brokers said.

They said the price idea of Rs2,500 per maund still being entertained by the leading among the ginners is progressively losing its relevance as spinners are not worried over the phenomenon of a price flare-up.

But rather ginners are falling in their trap as some of them had already lowered their selling prices to clear their positions before the arrival of new crop from the lower Sindh cotton belt.

According to market sources spinners hastened to cover the gap between a short local crop and their expanding demand early this year after having purchased about 0.850m bales from the foreign markets, bulk of which has already arrived in their godowns.

Most of them are, therefore, sitting pretty comfortable on their viable stock positions apparently in an effort to force ginners to go for panic selling.

“Spinners and mills will purchase the unsold stock of 0.160m bales from the ginners but on their own terms and prices, while the close of the financial year on June 30, haunts the latter,” dealers said.

Ginners will have to adjust their overdraft limits with the banks before the end of the June and that factor could force their weaker links to indulge in panic selling.

However, it is speculated that price game is slipping out of the hands of the ginners and they will have to toe the line of the buyers during the next two or three weeks.

Meanwhile, New York cotton futures maintained their recovery drive and finished further higher by 0.98 and 1.18 cents per lb for both the ruling July and the forward October contracts at 53.19 and 55.08 cents per lb respectively.

After remaining static for the last couple of session, official spot rates were also revised downward by Rs15 per maund at Rs2,425 per maund without 15 per cent sales tax.

Ready offtake remained at a low ebb as till late in the evening no deal was reported by any of the brokerage house.