11 September 2004	Saturday	25 Rajab 1425

KARACHI, Sept 10: Cotton prices on Friday modestly eased from the recent highs followed by reports of larger arrivals of phutti into the ginneries as growers were not inclined to hold on to their stocks.

Ginners were, therefore, obliged to sell lint as they were in no mood to sit on their stocks owing to highly erratic price movements in response to higher crop ideas and an uncertain foreign market, dealers said.

Most of the deals in physical trading were done around and below Rs2,300 per maund, about Rs25 to Rs50 lower as compared to overnight rates at which bulk of the business was transacted, they said.

"No one among the major cotton traders is inclined to hold on to their long positions in an uncertain future price outlook", brokers said adding "the chief beneficiaries of the prevailing panic among the ginners and growers is spinning sector".

Heavy daily buying by millers reflects that they too are uncertain about future price outlook despite initial reports of a bumper crop but they are lifting all the lots being offered by the ginners below Rs2,350 per maund, they said.

Reports that the prime minister's directive to the Trading Corporation of Pakistan (TCP) to procure surplus lint to stabilize prices would not affect the trading or price pattern as there was no possibility of any surplus even if the crop output touched the higher mark of 12m bales, market sources said.

During the last two years, annual mill consumption had touched the high mark of 13m bales plus and spinners had to import certain quantity to make the shortfall, they said. "The TCP entry may not cause any major change in the current trading pattern in the ready market, which will essentially be guided by supply and demand factors", they added.

Official spot rates were, however, firmly held at the last levels but some of the deals were done at slightly higher rates. New York cotton futures on the other hand suffered fall of 0.45 and 0.81 cents per lb for both the ruling October and the distant December contracts at 52.55 and 52.31 cents respectively.

Ready off-take was light and was mainly confined to Sindh variety, the following being some of the notable deals: 1,000 bales, Shahdadpur at Rs2,300, 200 bales, Tando Adam at Rs2,300, 200 bales, at Rs2,275, 200 bales, Shahdadpur at Rs2,275, 600 bales, Sultanabad at Rs2,250 and 200 bales, Bhiria at Rs2,300.