04 June 2004	Friday	15 Rabi-us-Saani 1425

KARACHI, June 3: Trading on the cotton market on Thursday remained insipid owing to tense law and order situation and fears of fresh violence in Friday's country-wide strike called by the MMA to mourn the death of a leading religious scholar.

Spinners and mills kept to the sidelines amid fears of spot delivery before next Monday as traders fear that the post-strike session may also remain dull, dealers said.

However, reports coming from the southern Punjab and upper Sindh cotton belts indicate that stray business is being transacted as some of the ginners have offered to sell their stocks below Rs3,200 per maund.

Floor brokers said the spinners and mills were not that worried as they were couple of weeks earlier as a fall of New York cotton futures below the 60-cent per lb level has made import more attractive.

New York cotton futures on Thursday fell by 0.85 and 0.65 cents per lb for both the ruling July and the new crop October at 57.38 and 58.00 cents per lb, respectively.

"Although the spinners had already make up the local crop shortfall around 65 cents per lb, the current levels make imports more attractive," brokers said, adding that is perhaps why they have "curtailed their local buying for the last couple of sessions".

The world cotton prices are expected to ease further as reports of an increase of eight per cent in world production has triggered speculative selling from leading stockholders, they said.

But there are no indications of a sympathetic fall in the local prices as they are guided by supply and demand factors and expected to stay around the current levels depending on quality.

According to market sources, the ginners may not be holding an unsold stock of half a million bales, which the spinners could consume in two weeks. Final crop figures for the current crop are expected to be released by the Pakistan Cotton Ginners Association on Saturday which could have positive impact on the current prices, they said.

Official spot rates were again quoted unchanged but stray business finalized in the ready section was in line with the quality of lint. Ready offtake was light and confined to about 1,500 bales as under: 200 bales Samandari at Rs3,125; 200 bales, Hasipur at Rs3,150; 300 bales, Rohri at Rs2,550; and 400 bales, various station, Karachi delivery at Rs3,050.