12 March 2004	Friday	20 Muharram 1425

KARACHI, March 11: Cotton market on Thursday resisted fresh decline as spinners resume their covering operations against forward sales of cotton yarn to their foreign trading partners.

As a result, some lots changed hands after last couple of sessions' listless physical activity but most of the deals were finalized in line with quality premiums of the lint in trade, dealers said.

Despite terribly bearish signals from the New York Cotton Exchange where prices have, during the last couple of sessions, fallen sharply lower on trade selling, fine lots continued to fetch higher prices.

Some of the deals in fine variety from the central Punjab cotton belt changed hands between Rs3,075 to Rs3,100, reflecting that ginners are not inclined to lower their asking prices.

"We are not inclined to sell at a loss at least for the near-term irrespective of steep decline in the world prices", says a leading ginner who still hold on to his large unsold stock "it is not that easy to sell lint below Rs3,000 after having purchased phutti at Rs1,500 per 40 kg."

Floor brokers said although future price outlook appears bearish in the backdrop of changing world scenario, ginners seem to be in no mood to lower their asking prices despite 13 cents per lb decline in the New York cotton futures during the last about six weeks.

"The question is not related to higher price tag but to statistics", they said adding "ginners are of the firm view that they can cash in on a short crop in line with their perceptions".

That is perhaps why after a modest psychological decline in prices in sympathy with the world rates, ginners are holding the fort as is evident from the falling daily turnover. Low-mic lots were, however, available around Rs2,600 on the lower side and Rs2,850 on the higher side depending on the quality of stuff.

Official spot rates, therefore, did not show any changes and remained basically unchanged from the overnight levels owing to revival of ready mill demand. After a couple of lean sessions, modest deals were finalized in the ready section, the following being notable among them.

SINDH TYPE: 400 bales, Hingorja at Rs2,625.

PUNJAB VARIETY: 3,000 bales, Haroonabad at Rs2,700 to Rs2,850, 200 bales, Muridwala at Rs3,100 and 700 bales, Gojra at Rs3,075.