17 July 2004	Saturday	28 Jamadi-ul-Awwal 1425

KARACHI, July 16: Cotton prices on Friday eased further as ginners tried to get out of unsold stocks apparently after having lost all hopes about a rebound.

Big lot business was witnessed after the ginners lowered their asking prices and spinners awaiting that opportunity for the last several weeks lifted all the lots irrespective of the quality standards.

An idea of prevailing uncertain conditions on the market may well be had from the fact that some of the exporters also joined the race and sold in part their stocks meant for exports, dealers said.

The current steep decline in New York cotton futures below 50 cents per lb has dealt a telling blow on the holding capacity of the local ginners, but finally they have to lower their asking prices to clear their unsold positions before the arrival of new crop gathers fresh momentum, they said.

Although New York cotton futures have shown a modest recovery after having received massive battering during the last couple of weeks, the recovery was too feeble to enthuse local ginners to hold on to their position.

"A difference of Rs350 per maund in the selling prices reflects a near-panic conditions among the ginners who still hold unsold stocks and are out to clear their positions irrespective of the fall in prices," brokers said.

Some of the fine lots changed hands at Rs2,500 per maund, while those of low-mic stuff at Rs2,125, being the season's lowest rate, they said. Official spot rates were further lowered by Rs25 per maund at Rs2,625, but most of the deals were finalized at much lower levels.

New York cotton futures on the other hand showed fresh a rise of 0.48 and 0.51 cents per lb for both the ruling October and the distant December settlements at 47.28 and 47.85 cents, respectively. Ready offtake was active as late in the evening about 8,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 2,900 bales, Mehrabpur at Rs2,375; 627 bales, Gothki at Rs2,400; 200 bales, Mirpur Mathelo at Rs2,500; 150 bales, Naushero Feroz at Rs2,150; and 100 bales, exporter to mill at Rs2,125.

PUNJAB TYPE: 1,200 bales, Fazalpur at Rs2,475; and 200 bales, new crop, Chichawatni at Rs2,450.