June 17, 2003	Tuesday	Rabi-us-Sani 16, 1424

KARACHI, June 16: Trading on the cotton market on Monday resumed on a quiet note as spinners remained conspicuous by their absence despite being the chief beneficiary of the fiscal measures.

Leading among them are, however, making selective buying in the new crop at rates slightly below the asking prices of the current crop for delivery next month, dealers said.

The notable feature was that trading also resumed in central Punjab lint where sowing is also a bit earlier than the upper Sindh and the southern Punjab cotton belts, they said.

The difference of selling prices of both the Sindh and Punjab types is Rs100 per maund, the former being at a discount because of quality factors, including the staple length of the fibre.

The new crop lots in trade are too small to influence the prevailing price levels for the current crop but there appears to be an effort on the part of buyers to lure ginners into their trading trick.

The arrival of phutti is steadily picking up and some of the ginneries are expected to resume their operations both in lower Sindh and central Punjab by early next month.

However, ginners still holding an old stock of 0.150m bales are little worried over the spinner tactics and did not lower their asking prices as they knew the new crop, which could influence the price trend, is still far away and there is no fear to hold on to their unsold positions.

“Despite having imported about 0.850 bales of lint from various sources during the current season, and duty cut on polyester fibre, spinners may have to resume local buying as the world rates are too expensive for them as far as their export parity levels are concerned,” market sources said.

Ginners presume that spinners still need local stuff to meet their annual consumption requirement and from now onward they will possibly be the only competitive suppliers of lint, they said.

Meanwhile, reports coming from the cotton belt indicate that the growth of the new crop is satisfactory and there are no reports of a major pest attack on any of the are because of extremely hot weather, which kills the insects and white fly.

There was no change in the official spot rates because of higher rates at which the business is being transacted in the new crop, dealers said.

Ready offtake was light totalling 300 bales of new crop as under: 200 bales, Burewala at Rs2,450 and 100 bales, Sultanabad for delivery by third week of next month.