05 October 2004	Tuesday	19 Shaban 1425

KARACHI, Oct 4: Trading on the cotton market on Monday resumed on an uncertain note followed by reports of damage to standing crop in the lower Sindh cotton belt because of rains.

There was no panic among the ginners or the growers and an air of optimism prevailed on the perception that rain has averted the major fall in lint prices. There was, therefore, no talk of a market crash as the untimely rain has changed the future price outlook both for the phutti and lint, which has dropped below the official support prices last week.

There was relative quiet on the ready front as both ginners and spinners were awaiting the release of PCGA data on phutti arrivals into the ginneries for the fortnight ended Oct 1, brokers said.

The figure is expected to give a fair idea of the crop and both ginners and spinners will base their future operations on the latest parity levels, they added. The arrival figure during the last fortnight was more than double, which in turn triggered selling by some of the ginners and growers, having negative impact on the lint prices, they said.

Although exact figure of damage to crop at the picking stage was not immediately known, some brokers believe the quality of lint may be below normal grade as soaked in the rain water the open bolls get damaged, brokers said. However, reports coming from the ginning factories close to the coastal areas and where the rainfall was said to heavy could not resume their operations as rain water is being drained out from the premises, some other said.

But picking operations of phutti may be delayed for a week or so owing to wet fields and also to quality considerations. Soaked phutti damage the quality of lint, analysts said.

Official spot rates were held unchanged at Rs1,950 per maund but some of the deals in the ready section were done above them. The following are some of the deals, which gone through late on Sunday evening in the Punjab cotton belt: 2,000 bales, Vehari at Rs1,955 to Rs1,999 and 200 bales, Multan at Rs2,000. Owing to rain there was a relative calm on Sindh cotton front.