October 31, 2003	Friday	Ramazan 4, 1424

KARACHI, Oct 30: Cotton prices on Thursday again rose followed by reports of lowering of the official production target by half a million bales to 10m bales owing to damage caused to the standing crop by late pest attack.

Lint prices, which have declined to Rs3,400 per maund on Wednesday again rose and most of the deals were done around Rs3,500 per maund depending on quality and micronaire of the lint in trade, brokers said.

The other contributory positive factor was a rebound staged by the New York cotton futures after having shed their extra weight during the last couple of sessions.

“Both the factors enabled ginners to further raise their asking prices and spinners were obliged to toe their line of thinking and the consequent renewed price flare-up,” they said.

The official committee which met in Islamabad on Wednesday took an overview of the cotton situation including supply and demand also feared that the total production figure may touch the low mark on 9m bales till the final reports of the damage come from the various monitoring centres.

“The lower crop figures are fuelling the current bull-run on the cotton market as spinners and mills have limited options to take some corrective measures”, market sources said.

What seems to have accentuated the local cotton situation is reports of production shortfall in China and India and the consequent higher world prices of lint, they said.

The other negative development is that foreign buyers of textiles are not inclined to reflect sympathetic increase in the end-products under the export agreements signed prior to the current price flare-up, they said.

Official spot rates were further lowered by Rs25 to Rs3,400 per maund but in physical trading most of the deals were done well above them.

New York cotton futures rose by 0.75 and 0.72 cents per lb at 82.73 and 84.92 cents for both the ruling December and the distant March settlements respectively.

Ready offtake was active as spinners again made panic buying around Rs3,500 per maund fearing further increase in prices, dealers said.

The following are some of the notable deals finalized late on Wednesday evening after Iftar. Rates are per maund without 15 per cent sales tax.

SINDH TYPE: 800 bales, Sanghar at Rs3,150 to Rs3,200, 100 bales, Mirpurkhas at Rs3,100, 200 bales, Shahdadpur at Rs3,150 and 800 bales at Rs3,150 to Rs3,200.

PUNJAB VARIETY: 1,000 bales, Bahawalpur at Rs3,400 to Rs3,450, 400 bales, Shujabad, 1,000 bales, Sadiqabad, 500 bales, Liaquatpur, 500 bales, Rajanpur, and 400 bales, Fazalpur at Rs3,475, 600 bales, Gojra at Rs3,450, 600 bales, D.G.Khan, 500 bales, Hasilpur, 200 bales, Chishtian at Rs3,450, 200 bales, Sahiwal, 800 bales, Haroonabad, at Rs3,425, and 400 bales, Arifwala at Rs3,500.