August 2, 2003	Saturday	Jumadi-us-Sani 3, 1424

KARACHI, Aug 1: The new crop lint prices rose further on Friday as spinners continued to cover their forward positions against foreign sales of cotton yarn fearing pressure on ready supplies.

“We have to keep pace with the increasing import orders from our traditional trading partners and have to remain in the market to maintain competitive edge on the export front,” says a leading spinner.

“Although lint matching to our export orders is not readily available owing to rain, which has caused suspension of picking operations of phutti in some of the areas of the lower Sindh cotton belt, we try to lift all the lots of both the new and the current crop offered for sales by the ginners,” he says.

Ginners claim the increase in lint prices is reflective of the fact that supplies will lag far behind the mill demand until the current spell of monsoon rain ends and ginning operations resume in the central Punjab cotton belt.

“Big-lot business in the current crop reflects that spinners are inclined to have all the floating stocks irrespective of the asking prices in apparent bid to meet their physical shipment deadlines of cotton yarn to foreign buyers,” they said.

Official spot rates for the current crop were further raised by Rs15 to Rs2,465 per maund, while new crop lint from the lower Sindh ginneries was traded around Rs2,500 per maund, dealers said.

Phutti rates are also showing corresponding increase as growers are not inclined to sell their stocks at the pre-rain rates of Rs925 to Rs950 per 40 kg. They are now asking Rs980 to Rs1,000 per 40 kg for the ready stocks.

Meanwhile, reports coming from the lower Sindh cotton belt indicate that picking operations of phutti had already resumed in most of the areas and more ginneries have now become functional.

Official spot rates maintained their upward drive for the second session in a row and rose further by Rs15 amid reports of short supply.

New York cotton futures on the other hand remained under pressure followed by speculative selling caused by reports of higher US crop and a considerable fall in world demand for the near-term.

Both the ruling October and the distant December settlements were marked further lower by 0.36 each cents per lb at 56.91 and 58.43 cents per lb respectively.

Ready offtake was moderate totalling about 8,000 bales both of the current and new crop as under:

NEW CROP SINDH: 200 bales, Nayabad at Rs2,500, 100 bales, Pithoro at Rs2,500, 200 bales, Sultanabad at Rs2,475.

PUNJAB NEW CROP: 200 bales, Chichawatni at Rs2,525, 200 bales, Sahiwal at Rs2,525, 200 bales, Mian Channu also at the same rate and a big deal of 3,500 bales based on Sindh phutti, Samundari at Rs2,600.

A big-deal o 3,000 bales of the current crop from a Giliwali ginnery was also reported at Rs2,650.