29 June 2004	Tuesday	10 Jamadi-ul-Awwal 1425

KARACHI, June 28: Cotton prices on Monday suffered fresh modest decline of Rs25 per maund on selling prompted by reports of rain in the major growing areas and predictions of a good crop.

Market sources said rain at this time of the season where the crop was sown earlier was beneficial for the tender plants as it helped in their steady growth. However, where the crop was sown a bit late because of shortage of irrigation water, notably in the central Sindh some of the fields may need resowing, they said.

But as a whole the widespread rains in the Sindh and Punjab cotton belts are claimed to be suitable for a healthy and a better crop. Floor brokers said the ginners were a bit jittery over the continued absence of the spinners and mills despite the fact that they have reduced prices in line with the quality premiums.

Some of the low-mic lint is being offered at as low as Rs2,400 per maund. "Spinners may need some more supplies despite the fact that they had already imported about 2.2m bales from various sources, but they are not inclined to go all-out for the local stuff to keep prices within the current range," they said.

The steep decline in world prices over the last couple of weeks also made import of lint cheaper and most of the leading spinners and mills have covered their positions after indulging in massive forward buying of the foreign lint.

As a result, they enter and exit the market at will with a view to keeping the ginners at their toes all the time in an apparent effort not allowing an increase in prices.

But some of the ginners holding bulk of the unsold stocks are not that worried over their unsold positions on the perception that the delayed ginning operations, sometime in the middle of August could put them in a better position as by that time the spinners may resume their local operations.

Official spot rates were, therefore, further lowered by Rs25 per maund at Rs3,000 per maund, although in physical trading most of the deals are being finalized well below them. Stray lots from the southern Punjab cotton belt changed hands but the details were not immediately available, dealers said.