17 October 2004	Sunday	02 Ramazan 1425

KARACHI, Oct 16: The cotton market finished the weekend session on a relatively improved note as spinners and private sector exporters remained active buyers at the prevailing prices.

But what seems to have averted the market crash was a strong support being extended by the Trading Corporation of Pakistan to stabilize prices at an economically viable level for leading players of the cotton trade, floor brokers said.

But unlike the previous season when the market remained in the tight grip of growers, they are at the receiving end during the current season owing to higher crop ideas, they said.

Most of them are selling their phutti well below the official support price of Rs925 per 40 kg in the absence of strong buying by the ginners. Small growers are virtually dumping the commodity in the ginneries at the ginners' options.

According to market sources, phutti prices in Sindh and Punjab cotton belts were being quoted at Rs750 and Rs800 per 40 kg depending on the quality.

The interesting feature was that private sector exporters have resumed their covering operations against forward sales of lint to various countries and are said to be an active player on the market after spinners and mills.

"Lint price below Rs2,000 per maund is in line with our export parity levels and that is why we are actively participating in daily market operations," says a leading exporter, adding "but bulk of our purchases are direct from the ginners as their packing conforms to our export standards."

However, the grower is out of the picture as the joint operation of spinners, exporters and the TCP could not ensure a fair price for him during the last couple of weeks, analyst said.

News from the textile export front are encouraging, which is also well-reflected in heavy buying by the mills and spinners but signals coming from the local yarn market reflect prices of various counts of yarn are being quoted at lower rates as compared to international parity levels, dealers said.

Meanwhile, reports coming from the cotton belt indicate that the picking operations of phutti are at their peak levels as the growers are inclined to sow wheat after harvesting cotton well in time.

For the second session in a row, official spot rates did not show any change and were firmly held at the last levels in line with ready prices at which physical business were being done.

Ready offtake was active as till late evening about 10,000 bales changed hands, the following being some of the notable deals: 600 bales, Mirpurkhas at Rs1,850; 400 bales, Sanghar at Rs1,875 to Rs1,975; 1,000 bales, Rahimyar Khan at Rs2,000; 400 bales, each Bahawalnagar and Muridwala at Rs1,975.