September 30, 2003	Tuesday	Sha’aban 3, 1424

KARACHI, Sept 29: Trading on the cotton market on Monday resumed on a firm note as ginners again raised their asking prices followed by a steady fall in arrivals of phutti from the growers.

Most of the deals both in the Sindh and the Punjab varieties in the ready section were finalized at much higher rates as compared to the weekend in the absence of many selling offers.

Unlike the weekend session, when some of the ginners holding long positions indulged in near-panic selling, there was a relative calm on the ginners’ front as no one among them was inclined to sell below Rs2,525 per maund without 15 per cent sales, brokers said.

Spinners, who have purchased about 15,000 bales both from the Sindh and the Punjab ginners at the weekend session mostly below Rs2,500 per maund between Rs2,450 to Rs2,475, re-entered the market to grab the floating stock at the previous rates but ginners were not in an obliging mood and raised their selling prices.

“The chief victim of the price war between ginners and spinners was the ready offtake,” says a leading broker, adding “as both of them were out to outwit each other, and ready business fell to modest proportions.”

Stray lots did change hands but no ginner was inclined to come out with the details of the lots in trade but local brokers said most of the deals were done at an average rate of Rs2,525, with some premium lots fetching higher prices.

Sources said the market might remain unsettled during the next couple of weeks as conflicting reports about the size of the crop may work on both sides of the ready prices.

Official sources are sticking to their initial crop projections, with minor downward adjustments followed by reports of pest attacks in some of the areas and hope the target of 10.5m bales could be achieved.

But spinners are not inclined to buy this idea and fear the crop may be well below the target and with import being too expensive they are out to grab the floating stock.

But ginners are not that fool as they also know fully well about the world cotton situation and operate accordingly and lower and raise the prices on asking prices of phutti by the grower, dealers said.

That was perhaps why spinners purchase about 20,000 bales in a session after prices fall to their parity levels and withdraw to the sidelines when ginners raise their asking prices, they said.

Official spot rates were lowered by Rs50 in line with the weekend rates but are expected to be raised on Tuesday as ready rates have risen sharply higher.

Ready offtake was active but details of a large ready business were not available as ginners were not inclined to give the exact price idea. About 6,000 bales changed hands above Rs2,500.