26 October 2004	Tuesday	11 Ramazan 1425

KARACHI, Oct 25: Trading on the cotton market on Monday resumed on a firm note as prices remained stable around the weekend levels aided partly by strong mill buying and partly to active participation of the TCP in daily activity.

Bulk of the mill buying was confined to the southern and central Punjab cotton variety for quality reasons, while lint from the Sindh cotton belt was neglected, though a couple of deals were reported well below Rs2,000 per maund, brokers said.

Instances of some big-lot business were not wanting as the largest deal of 12,000 bales from an Ahmedpur East ginnery changed hands at Rs2,025 per maund and purchased by a single buyer.

But on the other hand, Punjab lint was traded between Rs2,000 and Rs2,050 per maund depending on the quality of the lint and is selling like hot cakes as spinners and mills are not inclined to sit on the sidelines owing to the presence of TCP as an active second buyer, they said.

"Heavy daily mill intake reflects a quality war between the mills and the TCP," says a cotton analyst commenting on the large daily mill offtake. "There are fears among the spinners that if the TCP cornered the entire premium lots after operating its current pace for another month or so, all the good lots will be in its kitty."

And the spinners and mills could ill-afford this negative development as to need fine lots to spin higher counts of yarn and to make high quality fabrics, he adds.

But incidentally, no one including the growers could get any benefit from the current battle of wits between the TCP and mills as prices did not flare up as they do in similar conditions owing perhaps to higher crop ideas, some others said.

Although ginners are keeping pace in line with the prevailing market trend, higher unsold stock of 0.821m bales lying in their kitty still haunt them.

"Any slowdown in TCP buying even for technical reasons could have an adverse impact on the current prices as the spinners as sole buyers could exploit the situation," says a leading ginner.

Meanwhile, reports coming from the ginneries indicate that arrivals of phutti are at their peak levels as the growers are in no mood to hold on to their positions in an uncertain market.

As a result, official spot rates were firmly held at the last levels, although most of the deals in the ready section were done well above them.

Ready offtake was large as till late in the evening about 40,000 bales changed hands, the following being some of the notable deals:

SINDH TYPE: 1,000 bales, Mirpurkhas and 400 bales, Sanghar at Rs1,875; 600 bales, Tando Adam at Rs1,900 to Rs1,925; and 400 bales, Nawabshah at Rs1,975.

PUUNJAB VARIETY: 2,400 bales, Rahimyar Khan, 1,800 bales, Khanewal, 400 bales, Hasilpur, 1,800 bales, Khanewal, 1,200 bales, Chingoth, 1,200 bales, Chistian, 1,200 bales, Pir Mahal, 1,200 bales, Khanpur, 1,200 bales, Kabirwala and 1,400 bales, Sadiqabad, at Rs2,025 to Rs2,050; 1,200 bales, Gojra at Rs2,000 to Rs2,010; 1,600 bales, Muridwala at Rs2,015 to Rs2,025; 1,400 bales, Hasilpur at Rs2,000 to Rs2,025; 1,600 bales, Bahawalpur at Rs2,015 to Rs2,025; and 400 bales, Gaggon at Rs2,015 to Rs2,025.