14 March 2004	Sunday	22 Muharram 1425

KARACHI, March 13: The cotton market on Saturday lacked normal trading interest as local buyers and sellers were more inclined to watch the one-day cricket match between Pakistan and Indian ball-by-ball on TVs rather than indulging in physical trading.

Some of the spinners needing immediate supplies by early next week asked leading brokers to arrange a couple of lots for them were not in a mood to entertain fresh orders.

Physical activity remained at a low ebb throughout the session as brokers failed to establish needed link between the buyers and the sellers.

It was a crucial match for both the teams as it could well prove a forerunner for the current series to which too much national pride is attached in both the countries, dealers said.

However, after the end of the match, some of the brokers entertained some of the orders and made arrangements for the physical delivery by the next week from the local godowns, they said, adding "but details of the deals were not immediately confirmed."

Reports from the southern cotton belt indicate that some lots did change hands but most of them were of low-mic as spinners were not inclined to bid for the fine lots at the current asking price of Rs3,050 or Rs3,100 per maund.

But it is interesting to note that current pressure on the local prices seems to have eased a bit as official spot rates as well as those at which ready lots are being offered by the ginners were steadily held at the previous levels.

As a result, the prevailing standoff between the ginners and spinners is expected to stay as both have no other option to ease it. After having purchased phutti at much higher rates the former is not in position to lower their asking prices, while the latter has the parity problems on the export front at the current lint prices. It was perhaps in this background that the local market did not give a negative reaction to a fresh steep decline in New York cotton futures late on Friday closing.

Both the ruling May and forward July settlements were again marked down by 1.31 cents per lb at 64.62 and 66.04 cents, respectively, eroding the previous gains.

Local official spot rates on the other hand did react bearishly to them and were firmly held at the last levels.

Ready offtake was light owing to cricket match but reports coming in from the Punjab cotton belt indicate that about 2,000 bales changed hands at around Rs2,700, most of the lots being on low-mic.