December 3, 2003	Wednesday	Shawwal 8, 1424

KARACHI, Dec 2: Trading activity on the cotton market on Tuesday remained slow as ginners were not inclined to lower their asking prices amid rumours of pressure on supplies by early next year.

Stray lots, however, did change hands but mostly at the ginners asking prices around Rs3,300 per maund. Some of the leading spinners have offered to pay more for fine lots, needed by them to spin higher counts of yarn for the export markets.

An interesting feature was that some of the exporters having more lint than their forward sales are selling it to some needy mills at the higher rates.

A leading exporter who had purchased lint at much lower rates on Tuesday sold 200 bales to a needy spinner at Rs3,325.

Owing to current uneven price fluctuations on the world markets leading to uncertain conditions on the export front, some of the exporters are operating on the local market, of course, with higher profit margins than the export business, market sources said.

Floor brokers said ginners are holding on to their long positions on the perception that both local as well as international factors are in their favour and they are not inclined to sell below their parity levels.

According to official figures, world supplies of lint are estimated to lag far behind the annual consumption needs of the textile industry and that factor could keep prices higher during the current season.

That was perhaps why local prices were not bearishly influenced by the recent speculative rise and fall in the New York cotton futures during the last couple of sessions, they said.

Meanwhile, New York cotton futures for the March settlement soared by a limit-gain of 3.00 cents per lb at 73.09 cents followed by strong speculative support based pparently on short supply in the coming months.

The maturing December delivery posted a modest rise of 0.25 cents at 68.25 per lb owing to rolling of positions to the forward March delivery.

Official spot rates on the other hand were firmly held at the last levels, although some of the deals in the ready section were done below or above them depending on quality of lint.

Ready offtake was modest totalling about 7,000 bales as under:

SINDH VARIETY: 200 bales, Khipro at Rs3,100, 1,000 bales, Sanghar at Rs2,740 to Rs2,900 and 2,000 bales, Khairpur at Rs3,200.

PUNJAB TYPE: 1,000 bales, D.G.Khan at Rs3,300, 400 bales, each Hasilpur and Chishtian also at this rate.