November 5, 2003	Wednesday	Ramazan 9, 1424

KARACHI, Nov 4: Cotton market on Tuesday maintained a status quo as higher arrivals of phutti into the ginneries for the second fortnight in a row and both ginners and spinners adhered to the sidelines devising new operational strategy.

There was, however, no immediate negative impact of higher arrivals on the prevailing prices, which were quoted around the previous levels, with some dealers anticipating a standoff on the price issue.

According to figures released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended Oct 31, arrivals of phutti into the ginneries rose by 23.57 per cent as compared to previous total at 4.142m bales equivalent out of which spinners have so far purchased 2.823m bales and the exporters 0.113m bales, leaving an unsold stock of 1.260m bales with the ginners.

While arrivals in Sindh ginneries were lower by about 10 per cent as a substantial quantity of phutti was found its way into the Punjab ginneries earlier in the season, major increase was contributed by the Punjab total, according to official details.

The latest arrival figure should halt the current price flare-up at least for the near-term as it denies speculation about a short crop, says a leading broker adding the slowdown in buying and selling operations reflects that the contenders are still in two minds about the crop.

Some of the ginners claim bulk of the phutti has already arrived into the ginneries as growers were not inclined to hold on to their positions because of higher selling prices between Rs1,550 to 1,650 per 40 kg.

But some others say a lot of phutti is still being held by some leading growers owing to recent fall in prices to Rs1,400 per 40 kg well below the target of Rs1,700.

However, one thing still appears uncertain about the final crop figure and much will depend on the figures for the next fortnight ending Nov 15, which will give a fair idea about the size of the crop. By that time picking operations in major areas are expected to be completed and growers will hasten to send it into the ginneries for fears of damage to the quality or fall in prices.

Physical trading, therefore, remained dull as spinners were not inclined to make further commitments at the asking prices of ginners at Rs3,200 to Rs3,300 per maund depending on quality.

Official spot rates were firmly held at the last level of Rs3,250 per maund, while New York cotton futures fell by 0.32 cents for the ruling December contract at 76.41 cents per lb, with the forward March settlement adding 0.11 cents to the previous close at 79.03 cents per lb.

The following are some of the deals reported late on Monday evening.

SINDH TYPE: 200 bales, Nayabad and Tando Adam at Rs3,000.

PUNJAB VARIETY: 1,400 bales, Rahimyar Khan, 800 bales, Jehania, 400 bales, Hasilpur and 400 bales, Chichawatni at Rs3,300 per maund without 15 per cent sales tax.