17 February 2004	Tuesday	25 Zilhaj 1424

KARACHI, Feb 16: Trading on the cotton market on Monday resumed on a higher note as ginners made selective selling mostly at their asking prices amid reports of a short crop.

However, all eyes remained focused on arrival figures of phutti for the month ended Feb 15, due possibly during the next couple of sessions, brokers said.

But market sources say delayed figures are expected to be released by tomorrow (Tuesday) which in turn will set the future price trend and spinners' perceptions about the supply and demand during the next couple of months before new crop from the lower Sindh ginneries arrives, they said.

Brokers and spinners' opinions about the crop figures differ. While the former are not inclined to go above the figure of 9.4m bales, official sources put the figure around 9.5m bales for the period ended Feb 15, 2004.

The official sources still stick to their revised crop estimate of 10m bales based on their official survey, but other sectors of the cotton economy say the total could touch the figure of 9.7m bales on the higher side.

The current slowdown in mill offtake reflects that spinners have a fair idea of the crop and have already covered positions from the world markets after making forward buying, some others said.

However, ginners are pretty sure about the crop size and are in no mood to lower their asking prices, notably for the fine and quality lots. That is perhaps why lint, both from upper Sindh and southern Punjab ginneries is getting higher price of Rs3,300 per maund, excluding 15 per cent sales tax.

But ginners are not inclined to go all out or opt for panic selling before the final crop figures are not released by the Pakistan Cotton Ginners Association (PCGA).

Meanwhile, spinners and mills are not sitting idle and are on the world market with big shopping list as they have to cover up the gap between supply and demand owing to reports of a short crop.

During the last two years, mill annual consumption figure has soared to 12m bales plus and that is perhaps why spinners are not in a mood to take even a calculated risks amid reports of higher export sale of textiles, market sources said.

Official spot rates were, therefore, ruled firm, although some of the deals were done well above them depending on quality. A big deal of 6,000 bales, from southern Punjab ginneries was finalized by a leading spinner group at Rs3,300 per maund, while a low-mic deal of 200 bales, Sadiqabad was done at Rs2.850.