20 January 2004	Tuesday	27 Ziqa'ad 1424

KARACHI, Jan 19: Cotton prices on Monday ruled around the previous levels despite below market expectations arrival figures of phutti for the current fortnight ended Jan 15, 2004.

Both ginners and spinners maintained a status quo at least for the near-term apparently analysing the likely negative impact of the fall during the coming weeks on the prevailing prices, dealers said. But some others said lint prices were already being traded at the higher rates and any further increase fuelled by a short crop could work against the export parity levels of the textile industry.

Market sources have been predicting arrival figures slightly above the 9m bales mark but it did not touch that level, sending bearish signals among those spinners who are totally relying on the local stuff.

According to official arrival figures released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight totalled 8.869m bales as compared to 9.191m bales during the same period last year, showing a decline of 0.322m bales.

Cotton analysts said the gap is too big to be bridged by the next fortnight's figures at this time of the season as phutti arrivals in most of the ginneries generally dry up.

"Whether or not prices could rise to their previous all-time peak level of Rs3,600 touched in September last year, will essentially develop on the future buying strategy and the imported stuff", they said.

Out of the current arrivals, mills have purchased 7.155m bales, slightly below their previous season's intake during the same period, leaving an unsold stock of 1.796m bales as compared to 1.953m bales last year.

The relative decline in the unsold figures lying in the ginneries reflects that spinners remained orderly buyers in apparent bid to keep prices within their export parity levels.

The next couple of sessions will show how the ginners and the spinners react to the new situation and what will be the impact on the prices, brokers said.

Official spot rates were lowered by Rs25 in line with last weekend level but most of the deals were done on the higher side. Ready offtake was light totalling about 15,000 bales as under:

SINDH TYPE: 200 bales, Tando Adam at Rs2,800, 200 bales, Nawabshah at Rs3,175, 200 bales, Kanderio at Rs3,050 (seed-stuff), 1,000 bales, Sanghar at Rs2,700 to Rs2,900 and 4,000 bales, upper Sindh at Rs3,275 to Rs3,300.

PUNJAB VARIETY: 1,000 bales, Rahimyar Khan at Rs3,200, 1,000 bales, Sadiqabad at Rs3,000 to Rs3,100 and 1,000 bales, Haroonabad at Rs3,175 to Rs3,250.