08 August 2004	Sunday	21 Jamadi-us-Saani 1425

KARACHI, Aug 7: Cotton market on Saturday maintained firm trend as ginners were not inclined to lower their asking prices owing to interruption in supplies because of the current spell of monsoon rain in the lower Sindh.

Spinners were buyers of new crop around Rs2,350 and Rs2,375 per maund but ginners have raised their asking prices to Rs2,400 in sympathy with increase in phutti rates.

An air of optimism prevailed among the ginners who still held unsold stocks of the current crop. The federal finance minister in his recent meeting with the ginners had assured them that the Trading Corporation of Pakistan (TCP) would lift the entire unsold stock of the current crop to bail them out from the impending financial crisis.

Ginners were also optimistic about the resumption of hedge trading in the backdrop of the federal secretary of commerce's assurance during his visit to the Karachi Cotton Association (KCA) on Friday to take up the issue with the relevant authorities.

"The new cotton season has made a debut amid positive news, notably with keen official interest and indications are that all those associated with the cotton trade will benefit", says a ginner.

According to local brokerage houses, growers were fixing their unfixed stocks of phutti at Rs1,000 or slightly above this level.

Meanwhile, reports coming in from the lower Sindh cotton belt indicated that picking operations of phutti were suspended because of Friday's rain in most of the cotton growing areas.

Both phutti and lint prices were expected to rise further from the current level as new crop arrivals from the growers would dry up at least for a week until picking operations are resumed, brokers said.

There was no change in the official spot rates which stayed firm at the previous close of Rs2,350 but in the ready section many a deals were done well above them.

New York cotton futures on the other hand suffered fresh decline of 0.83 and 0.82 cents per lb for both the ruling October and the distant December contracts at 44.90 and 45.60 cents respectively.

Owing to recent developments on the cotton front, both ginners and spinners kept to the sidelines, although a couple of lots changed hands late in the evening.