18 September 2004	Saturday	02 Shaban 1425

KARACHI, Sept 17: Trading activity on the cotton market on Friday was relatively slow as spinners and mills kept to the sidelines apparently taking stock of their inventories before resuming their covering operations.

Spinners have been active buyers for the last about a month and on average lifted all the lots offered by the ginners below Rs2,300 per maund amid active trading. The sudden pause in mill buying was also attributed to higher crop ideas and as there was no pressure on ready supplies or a price flare-up, they have slowed down their daily purchases, brokers said.

"On an average, about 50,000 of phutti are arriving in the ginneries daily, signalling that crop could hit an all-time high mark of about 13m bales", says a cotton analyst adding "the crop has already crossed the danger zone, at least for the near-term".

Growers are not inclined to hold on to their unsold stocks and try to dump them in the ginneries and sell them on cash basis. Unlike the previous years, no one among them is inclined to keep them on unfixed basis hoping and an increase in prices.

An average phutti rate at which growers are selling is Rs940 to Rs970 per 40 kg in Sindh and Rs1,000 to Rs1,010 in the Punjab cotton belt an average rate of lint is Rs2,200 to Rs2,275 for both the Sindh and the Punjab lint depending on quality.

The notable feature is that all the bales being turned out by the ginneries are being promptly lifted by spinners and mills at the prevailing rates, he said. He said the prevailing average rate of Rs2,200 per maund suit all the three main players in the cotton trade, grower, ginner and the spinner, which is well-reflected in the daily physical volume.

The prevailing rates at the New York Cotton Exchange around 50 cents per lb are also compatible with the local prices but spinners are preferring the local stuff for obvious reasons, market sources said.

Official spot rates did not show any change for the fourth session in a row although some of the deals in the ready section were done above them. Ready off-take was modest as till late in the evening 400 bales, of Jhole was sold at Rs2,250 and 600 bales, of Rahimyar Khan at Rs2,275 per maund.