24 February 2004	Tuesday	03 Muharram 1425

KARACHI, Feb 23: Cotton prices on Monday eased further as both spinners and mills adhered to the sideline encouraged apparently by the official report of higher crop figure of 10 million bales.

Physical activity remained confined to a couple of lots as brokers and ginners remained busy in the meeting with the federal minister of food and agriculture who sought the opinion of the KCA and others on the new cotton trade policy to be announced during the next couple of weeks, market sources said.

However, both the brokers and KCA officials were a bit optimistic about the re-opening of hedge trading in cotton after the minister promised to look into the matter if it is in the interest of growers, they added.

Stray lots did change hands but leading spinners remained conspicuous by their absence amid predictions that prices could ease further after ginners indulge in selling.

Some of the ginners offered to sell low-mic lots but held on to their unsold positions of fine on the perception that official crop projections of 10m bales may be a deceptive figure at least for the near-term, brokers said.

They said prices of fine and contamination-free cotton were expected to remain a bit expensive on the strength of their own crop idea, which did not touch the high mark of 10m bales and was billed well below it.

Although prices of fine lots are still being quoted on the higher side at around Rs3,200 per maund, no deal was reported at the recent peak level of Rs3,300 for the last couple of sessions, they said.

Meanwhile, physical shipment of lint against forward sales remained steady as the private sector exporters maintained the shipment deadlines. During the month of January, about 12,000 bales were shipped to various destinations, the totalling since Aug 31 last year being 0.127m bales up to Jan 31, 2004.

Official spot rates were lowered by Rs25 at Rs3,125 in line with the low-mic lint at which some of the deals are being transacted. Ready offtake was modest totalling about 5,000 bales, the following being some of the notable deals:

SINDH VARIETY: 200 bales, Mirpurkhas at Rs2,600; 200 bales, Hingorja at Rs2,850; and 1,600 bales, upper Sindh at Rs3,150 to Rs3,200.

PUNJAB VARIETY: 1,200 bales, Rahimyar Khan at Rs3,200; 800 bales, Rasoolabad at Rs2,850; 400 bales, Vehari at Rs3,125; 200 bales, Haroonabad at Rs3,125.