23 April 2004	Friday	02 Rabi-ul-Awwal 1425

KARACHI, April 22: Modest trading activity was witnessed on the cotton market on Thursday as some of the leading spinners remained active buyers at the prevailing rates.

The major buying interest remained confined to fine lots as leading spinners and mills lifted all the lots offered by ginners between Rs2,850 to Rs3,000 per maund, brokers said.

The interesting feature was that most of the lots in trade were well above the 1,000 bales figure, reflecting the spinners are now no more inclined to keep to the sidelines hoping fall in prices, they said.

"The lower unsold stocks and perception of a total crop figure of below 10m bales have forced the spinners to cover their forward positions amid fears of supply-based price flare-up," dealers said.

Unlike the previous sessions about 10,000 bales are now changing hands daily but mostly below the Rs3,000 level as the ginners have also realized predictions of further increase in prices at the fag-end of the season may not prove correct.

According to market sources, the mills were out to grab the floating stocks to meet their export commitments for the last quarter of the current year ending June 30, as expensive imports in the backdrop of a highly volatile world prices, leading among them were not inclined to take a risk as far as their export commitments were concerned.

"Most of the spinners have secured large export orders for higher counts of cotton yarn for which they need fine lots at least with a medium staple length," brokers said, adding that is why bulk of the business is confined to premium lots.

Reports from the New York cotton market are highly disturbing, having negative impact on the textile exports from Pakistan as most of the export deals are finalized based on the average price of New York cotton futures both for lint and cotton yarn, some spinners claim.

New York cotton futures on Wednesday rose sharply by 1.95 cents per lb at 63.45 cents per lb for the ruling May delivery, while the forward July was quoted higher by 0.77 cents at 62.61 cents per lb. There was, however, no change in the local spot rates, which were again firmly held at the last level of Rs2,850 per maund.

Ready off take was light as till late in the evening about 8,000 bales changed hands, the following being some of the notably deals: 1,000 bales, Dharki at Rs2,900; 600 bales, Salepat at Rs2,650; 1,000 bales, Khanewal at Rs3,000; and 1,200 bales, Chingoth at Rs2,850.ftebr11