30 April 2004	Friday	09 Rabi-ul-Awwal 1425

KARACHI, April 29: Cotton market on Thursday lacked normal trading interest as spinners withdrew to the sidelines anticipating decline in prices after more-than-limit fall in New York cotton futures on panic speculative unloadings.

The sell-off was triggered followed by reports that China may not need more lint to meet its consumption needs. It has been on a big shopping list and had already purchased half a million bales from the US exporters.

But on the other hand ginners are steadily holding on to their unsold positions and appear to be a little worried over the prevailing panic on the world markets.

Some leading ginners say they will not be influenced by the negative fallout of the current steep decline in world lint prices and await further developments. "New York cotton futures generally behave erratically for some internal reasons and their price trend could not relied for a longer period being speculative in nature, although some vested interests try to spread scare among the ginners".

"Local prices may be generally guided by the supply and demand factors and there is no cause of worry for any of us", claims a leading ginner "it may not be that difficult to sell about a million bales before the arrival of the new crop".

An air of optimism, however, prevailed among the spinners as the fall of the July contract below the 60 cents per lb mark has made imports of lint more competitive if the current panic-selling was sustained.

New York cotton futures on Wednesday received massive battering on panic-selling, off more than limit-decline of 4.85 and 3.00 cents per lb at 60.00 and 59.63 cents per lb for both the ruling May and distant July settlements.

"There could be a turmoil on the world cotton market if the New York futures remain under speculative squeeze", says a leading analyst adding "some of the leading spinners and mills still need some more supplies have already ordered their international agents to make forward deals around the current levels".

It is, however, not clear how the local market will react after the trading resumes next week as by that time final arrival figures of phutti may also be available.

Physical activity on the local market, therefore, remained insipid as both the sellers and the buyers kept to the sidelines without any bidding. Official spot rates, however, did not show any change and were firmly held at the overnight level of Rs2,875 per maund.

Ready off take was at a low ebb as spinners kept to the sidelines anticipating decline in prices. Some of the deals in Sindh type were reported late on Wednesday evening as under: 200 bales, Moro at Rs2,840 and 200 bales, Kot Diji at Rs2,860.