July 15, 2003	Tuesday	Jumadi-ul-Awwal 14, 1424

KARACHI, July 14: Cotton market on Monday resumed trading on a firm note as ginners were not inclined to lower their asking prices despite reports of modest unsold stocks of the new crop.

Reports coming from the central Punjab cotton belt also indicate that some of the ginners failed to find ready buyers for the lint ginned out of the Sindh phutti, although unsold stocks are not more than few thousand bales, brokers said.

However, despite falling mill demand, ginners are not worried over the prevailing sluggishness and leading among them are judiciously holding the price line on the perception that mills and spinners are on the receiving end at least for the next couple of weeks, they said.

Although spinners are short of their annual consumption needs, they are not indulging in panic selling in an effort not to allow any speculative increase in prices.

After a brief spell of modest covering purchases both in the current and new crops, most of the spinners remain conspicuous by their absence and keep ginners awaiting their return.

But it goes to the credit of lower Sindh ginners that they have a firm hold on the price line. No one among them is willing to sell below the unanimously agreed spot rate of Rs2,300. Rather most of the deals are finalized between Rs2,350 and Rs2,375 per maund without 15 per cent sales tax.

Floor brokers said ginners appear to be in a commanding position at least for the near-term as they are selling lint at their asking prices and never indulged in hasty selling despite spinners absence from the ready market for weeks. Meanwhile, reports coming from local yarn markets said prices did not show much change, although the offtake of the lower counts of cotton yarn was on the higher side. The end-product users, notably the ancillary industry is building up long stock positions at the current levels.

According to market sources picking operations of phutti in the lower Sindh cotton belt have been resumed as there have been no fresh rain and the fields are now almost dried up.

Official spot rates were again firmly held at the previous levels in line with the prevailing prices on the ready counter.

Ready offtake was light as till late in the evening only one deal for 500 bales from a Mirpurkhas ginner changed hands at Rs2,375 per maund.