December 6, 2003	Saturday	Shawwal 11, 1424

KARACHI, Dec 5: Physical activity on the cotton market on Friday further picked up as spinners continued to indulge in big-lot business apparently in an effort to grab the floating stock of premium lots.

The notable feature was that the market did not react bearishly to fresh sharp setback in the New York cotton futures and ruled steady having an eye on the local supply and demand factors.

Both the maturing December and the ruling March contracts on Thursday suffered fall ranging from 1.20 and 1.40 cents at 67.00 and 71.23 cents per lb respectively.

For the third session in a row, both the ginners and the spinners maintained a status quo apparently under an unwritten agreement not to raise prices higher from the current levels.

As a result, most of the deals for fine lots were finalized between Rs3,250 to Rs3,300 per maund as ginners holding long positions appear to be in n obliging mood because of risks involved to hold on to long positions, dealers said.

Another about 20,000 bales changed hands around these levels and some leading brokers claim the mill intake was much higher than the official figures.

However, some of the ginners are worried over the wide difference of Rs400 per maund between the inferior and superior lots, which in turn may have a negative impact on their overall inventories, he said.

During the previous years, there had been quality differential but not that big as the prevailing one, which gives a tactical leverage to the spinners to outwit the ginners, he adds.

Meanwhile, there was relative quiet on the export front as the private sector exporters did not physically ship any consignment during the last month. During October, they shipped 35,324 bales as compared to 6,235 bales a month earlier.

It was perhaps in this background that official spot rates were firmly held at the overnight level of Rs3,225 per maund, excluding 15 per cent sales tax.

Ready offtake was fairly brisk, the following being some of the notable deals:

SINDH VARIETY: 1,000 bales, Jhole at Rs3,075, 2,000 bales, Sanghar at Rs2,750 to Rs3,050, 1,000 bales, Tando Adam at Rs2,800 to Rs3,000, 200 bales, Akri at Rs3,250, and 200 bales, also of K-68 at this rate.

PUNJAB TYPE: 400 bales, Jampur, 2,000 bales, Chishtian, 2,000 bales, Haroonabad 1,000 bales, Muridwala, 1,000 bales each Sadiqabad and Rahimyar Khan at Rs3,300 and 800 bales, inferior type, Jehania at Rs3,000.