December 2, 2003	Tuesday	Shawwal 7, 1424

KARACHI, Dec 1: Cotton market on Monday maintained steady trend as fears of a short crop kept spinners at their toes all the time and they remained active buyers around the current levels.

The post-holiday session was, however, dull as ginners and brokers most of the time remained busy in exchanging Eid greetings rather than indulging in physical trading.

The normal trading session is expected to be resumed from Tuesday when both ginners and spinners will re-enter the market with new guidelines based on conflicting reports about the size of the crop.

“The fact that the market was not influenced bearishly by the massive either-way price movements in the New York cotton futures speaks eloquently about the crop estimates”, says a leading cotton analyst.

During the holidays, New York cotton futures rebounded to 70 cents per lb after having fallen to 67 cents per lb and in between some of the leading spinners managed to make forward deals of about half a million bales, he adds.

“No one could precisely predict about the supply and demand figures at this stage”, market sources said and that is perhaps why “the market is keeping a firm outlook, without being influenced by the external developments”.

Leading ginners who are holding long positions are not inclined to sell below Rs3,200 per maund, while spinners have a lower price ideas and stayed on the sidelines.

But some leading floor brokers said the quality war among the spinners is expected to start soon as stocks of fine lots are not easily available at the current prices.

That is perhaps why the arrival figures for the fortnight ended Nov 30, are being awaited, which will give a fair idea of the crop. The figure, over the last about two months, has dropped from 32 per cent to nine per cent on Nov 15.

Meanwhile, reports coming from the Punjab cotton belt indicate that phutti prices had again risen to Rs1,500 per maund but its quality is poor.

Official spot rates were, therefore, firmly held at the last levels, although some of the deals were reported below them.

Ready offtake was light and mostly confined to fine lots from the southern Punjab cotton belt. About 7,000 bales changed hands around Rs3,250 to Rs3,300 per maund excluding 15 per cent sales tax.