December 17, 2003	Wednesday	Shawwal 22, 1424

KARACHI, Dec 16: Cotton prices on Tuesday eased modestly from the current higher levels on renewed ginner selling prompted by reports of import of lint from India and some other countries to make up an expected local crop shortfall.

Under the trade policy the export and import of lint cotton is free and some of the leading spinners having firm export orders for textiles seem to have opted for imports to meet a possible crop shortfall, brokers said.

However, there are no details of import of lint from India in the official figures, which stood at 0.114m bales since Aug 1 to Nov 30.

Lint prices fell modestly from the current high levels after the news as fine types from the southern Punjab and the upper Sindh ginneries were available between Rs3,100 to Rs3,200 per maund without 15 per cent sales tax depending on quality of lint in trade, they said.

While the leading textile group opted for import of lint, reported to be available at relatively lower levels, their weaker links continued making panic buying of the local stuff.

That is perhaps why another 50,000 bales, changed hands for the fourth session in a row, indicating that spinners and mills are not inclined to take even a technical breather and are out to grab the floating stock.

Ginners too are not in a mood to hold on long positions on the perception that the opening of floodgate of imports could further depress prices in the coming sessions. Already, they had fallen from the all-time peak level of Rs3,600 per maund to Rs3,100.

Market sources said that in the backdrop of reports about the import of lint, the latest arrival figures for the fortnight ended Dec 15, to be released by the Pakistan Cotton Ginners Association in the next couple of sessions, may not prove a market factor.

Official spot rates were firmly held at the last levels for the second session in a row as bulk of the business in the ready section was done around them.

New York cotton futures on the other hand showed modest increase of 0.26 and 0.25 cents at 70.57 and 71.67 cents per lb for both the ruling March and the distant May settlements, respectively.

Ready business was fairly brisk as about 50,000 bales, including some big deals, changed hands, the following being some of the notable deals:

SINDH VARIETY: 600 bales, Bhiria Road at Rs3,050; 1,000 bales, Sanghar at Rs2,600 to Rs2,850; 4,000 bales, upper Sindh at Rs3,200.

PUNJAB TYPE: 5,000 bales of Rahimyar Khan, 3,000 bales Sadiqabad, 4,000 bales Bahawalpur, 4,000 bales Jehania and 3,000 bales of Burewala at Rs3,150 to Rs3,200; 1,000 bales of Haroonabad, 2,000 bales of D.G. Khan at Rs3,100 to Rs3,200; 2,000 bales, Fazalpur at Rs3,200 to Rs3,250; 2,000 bales of Alipur and 1,500 bales of Chinigoth at Rs3,200; 1,000 bales, Liaquatpur at Rs3,150 to Rs3,175; 2,000 bales, Lodhran at Rs3,150 to Rs3,200; 1,000 bales, Nurpur at Rs3,100; and 4,000 bales, Ahmedpur East at Rs3,175 to Rs3,200.