August 8, 2003	Friday	Jumadi-us-Sani 9, 1424

KARACHI, Aug 7: Cotton market on Thursday showed firm trend as ginners raised their asking prices for the new crop followed by reports of fresh rain in some of the lower Sindh areas and suspension of picking operations.

Some of the deals were reported at the highest rate of Rs2,500 per maund depending on the quality of lint, as leading spinners needing fine lots with an average micronaire were willing to buy them at a premium, dealers said.

The underlying sentiment in part was also influenced by higher world prices, which have been under pressure for the last couple of sessions under the lead of New York cotton futures.

Both the ruling October and the new crop December settlements were traded higher by 1.47 cents per lb each at 57.40 and 58.85 respectively on active speculative buying followed by reports of Chinese entry as a new crop buyer to make up for its crop shortfall.

Trading on the local market was resumed around the overnight levels but as the mill demand picked up prices rose to an average rate of Rs2,470 as compared to Rs2,450 during the last couple of sessions.

Floor brokers predict further increase in new crop prices as spinners are unsure about the supplies and may opt to lift the available lots at the ginners asking prices.

“With the old crop stocks about exhausted and imports being expensive, spinners are relying on the local supplies,” they said adding “but the current spell of monsoon rain has disrupted both the picking and ginning operations though temporarily.”

However, reports about the condition of the crop in the Punjab cotton belt is claimed to be fairly satisfactory where the rain spell was moderate and did not damage the standing crop.

There are, however, reports of post-rain pest attack on some of the areas but controlled by timely spray of pesticides, market sources said.

Official spot rates were firmly held at the overnight levels but in the ready section some of the deals were done above them.

Ready offtake was modest totalling 1,500 bales of new crop Sindh, the following being some of the notable deals: 200 bales, Mirpurkhas at Rs2,450, 200 bales at Rs2,460, 400 bales, Tando Adam at Rs2,450, 100 bales at Rs2,460, 200 bales, Sultanabad at Rs2,470 and 100 bales, Kot Ghulam Muhammad at Rs2,500.