15 April 2004	Thursday	24 Safar 1425

KARACHI, April 14: Cotton prices on Wednesday shed another Rs25 as some of the ginners tried to get out of the market followed by bearish reports from the world markets but there was no matching buying by the spinners or mills.

Prices of low-mic lint fell to as low as Rs2,400 and those of fine lots to Rs2,700 but spinners were not in an obliging mood anticipating further decline, dealers said. There is panic among the ginners after the limit-loss in the New York cotton futures and no one among them could precisely decide how to react to the changing world price trends, they said.

"The big question being debated among the leading ginners who still hold large unsold stock is how to get out of the market amid falling world prices", says a leading ginner adding "the price situation could get out of our hands as spinners are exploiting the current situation".

But the general consensus among them was that to watch the world price trend for another week or so before opting for further action, he said. Both spinners and mills have further curtailed their daily offtake in an effort to keep ginners at their toes all the time until weaker links among them resort to panic selling.

"The next few sessions could be very crucial for the ginners", market sources said adding "if the New York cotton futures do not recovers from the current seasonal lows, the ginners will remain at the receiving end despite a pressure on the local supplies".

"We have purchased lint at an all-time high level of Rs3,400 per maund at the peak of the season and now we will like to buy it around Rs2,200 to remain competitive on the export market", predicts a spinner.

But some others said nothing could be said about the future price at this stage at least for the cotton as it is fraught with high risks as far as international price situation is concerned.

New York cotton futures on Tuesday suffered fresh setback of 1.39 and 1.28 cents per lb for both the ruling May and the distant July settlements at 57.37 and 59.41 cents per lb respectively.

Local official spot rates were also quoted further lower by Rs25 and dealers predict further fall in line with the world prices. Ready offtake was light totalling about 2,000 bales, the following being some of the notable deals: 600 bales, Salehpat Rs2,600 and 400 bales, Rohri also at this rate.