June 14, 2003	Saturday	Rabi-us-Sani 13, 1424

KARACHI, June 13: The cotton market on Friday showed firm trend as spinners remained active buyers at the current levels but ginners held on to their positions followed by reports of steep increase in world prices.

Floor brokers said ginners held on to their positions most of the time anticipating further increase in prices in sympathy with higher New York cotton futures, which soared to new 15-year highs.

Although ginners had already exhausted bulk of their unsold stocks, but the balance of about 0.150 bales, mostly of good quality could fetch higher price irrespective of the fact that trading has resumed in new crop of Sindh on forward basis, they said.

New York cotton on Thursday soared to new peak levels of 55.67 and 58.18 cents per lb for both the ruling July and the new crop October settlements, respectively.

Floor brokers attributed the current price flare-up in New York cotton futures to reports of higher consumption of the local textile industry as compared to previous season and steady growth in export because of short crop in other major areas, including China and Pakistan.

Hoping further increase in local prices in response to positive developments on the world cotton front, hereto worried ginners in the absence of mill buying are now in much better position, they said.

While on the other hand some of the leading spinners are seeking big deals at the current levels fearing further increase in prices during the next couple of weeks.

They said there could be price war between the ginners and the spinners in coming sessions, the former could have an upper hand because of an expected pressure on ready supplies. The unsold stocks with the ginners are barely enough for a couple of days.

Meanwhile, another lot of 100 bales new crop from a Sultanabad ginnery was sold at around Rs2,350 per maund for delivery between July 15 and 20, dealers said.

Official spot rates were steadily held at the last levels as most of the deals in the ready section are being transacted at Rs2,500 or slightly above depending on quality.

Ready offtake for the second day in a row was modest totalling about 3,000 bales as under:

NEW CROP: 100 bales, Sultanabad at Rs2,350, delivery next month.

CURRENT CROP: 1,400 bales, Lodhran at Rs2,500 and 500 bales at Rs2,525.