22 October 2004	Friday	07 Ramazan 1425

KARACHI, Oct 21: Cotton market on Thursday showed firm trend as strong presence of the TCP, as a second buyer, has reinforced the ginner perceptions about a robust rally.

But spinners are also in no mood to sit on the sidelines and judiciously followed the each price flare-up with a matching ready off-take both at the rise and the decline.

On average about 20,000 bales changed hands at Rs2,000 but late in the evening some of the leading ginners from the southern Punjab cotton belt managed to get a still better price for selected lots at Rs2,050 per maund, dealers said.

"The cotton market is moving up as three active buyers, spinners, exporters and TCP, are in the arena offering a wide choice to the ginners to sell their stocks at the best price," they said.

Of late some of the leading ginners have opted for the TCP and are selling to it at the higher rates despite some procedural problems including delay in payments, they added.

Cotton analysts said the recent three-pronged attack on the lint has altogether changed the future market outlook, sending some distress signals among the spinners and mills.

"Higher lint prices on the local market do disturb our export competitiveness," says a leading spinner. "Yarn inventories are piling in the absence of competitive export outlets."

Meanwhile, exporters are also active buyers against their forward sales, leading among them have made export sales up to Oct 15, totalling 83,134 bales including 43,739 bales of the previous crop.

Physical shipments of 13,005 bales have been made so far against the total foreign sales of 83,134 bales, according to official figures.

According to Cotlook Index, Pakistani lint is fetching higher prices on the world market after it recovered above the 50 cent mark at 52.85 for index A and 51.15 cents per index B. Pakistan lint is sold in line with the Index B.

Official spot rates were revised upward by Rs25 at Rs1,950 per maund, while New York cotton futures also rose by 0.45 and 0.5 cents per lb for both the ruling December and the forward March contracts at 47.99 and 47.05 respectively.

Ready off-take was active as till late in the evening about 25,000 bales changed hands, the following being some of the notable deals;

SINDH VARIETY: 2,000 bales, Mirpurkhas at Rs1,850 to Rs1,875, 1,000 bales, Tando Adam at Rs1,875 to Rs1,900, 200 bales, Sarhari at Rs1,975, 400 bales, Nawabshah also at this rate and 200 bales, Sanghar at Rs1,875.

PUNJAB TYPE: 2,000 bales, Rajanpur, 1,600 bales Bahawalpur, 1,400 bales, Hasilpur, 1,600 bales, Gojra,at Rs2,000, 400 bales Haroonabad at Rs2,010, 200 bales, Lodharan at Rs2,025, 1,400 bales Bahawalpur at Rs2,000 to Rs2,025, 2,000 bales, Rahim Yar Khan at Rs2,050 and 1,800 bales Sadiqabad at Rs2,000 to Rs2,050.