July 23, 2003	Wednesday	Jumadi-ul-Awwal 22, 1424

KARACHI, July 22: Cotton prices on Tuesday rose further as haunted by an expected pressure on supplies spinners were inclined to share ginners thinking on the future outlook.

Official spot rates were, therefore, further raised by Rs15 per maund at Rs2,450, but ginners appear to be reluctant sellers anticipating further increase in prices.

New York cotton futures on the other hand continued to attract speculative selling aided by reports of higher crop ideas in China and the US and fell further by 0.30 and 0.35 cents per lb at 59.30 and 61.06 cents per lb for both the ruling October and the distant December settlements, respectively.

However, as spinners and mills are in no mood to go for the foreign lint owing to higher parity levels, they are awaiting the resumption of normal trading after the current spell is over.

“The prevailing prices are essentially guided by the supply and demand factors sans the speculative element, cotton consultant Naseem Usman said, adding “once the picking operations of phutti resume in the lower Sindh cotton belt, prices are expected to fall from the current levels.”

He claims private crop surveys conducted by leading ginners in the Punjab cotton belt show that the current monsoon rain spell is beneficial for the standing crop as it is yet far way from the flowering stage.

But market sources say reports coming from the lower Sindh cotton belt where picking operations were in full swing before rain, the quality of the fibre may be damaged as open bolls get moisturized.

The crop here may have been slightly damaged but the figure could not be more than a few thousand bales.

Cotton experts say much will depend on the condition of the new crop during the post-rain weeks. Chances of a pest attack are there but timely spray by the farmers could eliminate any major danger to the crop.

Meanwhile, reports coming from the lower Sindh cotton belt suggest that most of the ginneries are expected to resume their operations by the next couple of days as picking of phutti has started in some of the areas.

However, growers have raised their asking prices to Rs980 per 40 kg and leading among them are delivering phutti on unfixed basis hoping further rise in prices.

Ready offtake was light as till late in the evening 600 bales from a Sultanabad ginnery changed hands at Rs2,375 per maund.