29 October 2004	Friday	14 Ramazan 1425

KARACHI, Oct 28: The cotton market on Thursday showed firm trend as prices tended further higher in an actively traded session amid strong mill demand. Official spot rates were further revised upward by Rs40 at Rs2,040 per maund, although in physical trading bulk of the business was finalized well above them.

An unseen fear about the future supplies and price flare-up seems to have gripped the textile sector, which is indulging in panic and big-lot business daily and in the process prices are rising.

The market witnessed a mad rush for the floating stock as spinners and mills are not inclined to take even a technical breather to have a look at their inventories and in the process prices are edging higher daily, brokers said.

"Lint prices are expected to touch the higher limit of buying rates of the TCP at Rs2,159 per 40 kg not in a very distant future," they predict, adding "only the prevailing insanity on the part of spinners will be blamed by their weaker links in due course."

The TCP is in the market to support them and ensure competitive prices to all those associated with the cotton trade and so far it has purchased only 0.383m bales, out of the ginned lint of 3.6m bales and there is no reason to speculate that TCP's modest offtake could upset the price pattern based on supply and demand, market sources said.

"It is infighting among the spinners and mills to grab the floating stock of fine lots, which is causing price flare-up rather than any other factor including the presence of the TCP and the exporters," they said.

One thing is pretty clear now that the crop is safely home and there is no danger of external threat of damage from any quarter, they said, adding "a figure of 12m bales may not be on the higher side and the spinners should base their supply and demand perceptions on this figure and price mechanism on that basis," they added.

The market in part also derived its strength from the higher New York cotton futures closing where the ruling contract ended with a fresh rise of 0.21 cents per lb at 46.83 cents per lb, while forward March delivery fell by the same amount at 45.67 cents per lb.

Ready offtake was maintained on the higher side as about 25,000 bales late on Wednesday evening and Thursday changed hands, the following being some of the notable deals.

SINDH TYPE: 400 bales, Tando Adam at Rs1,930 to Rs1,935; 400 bales, Mirpurkhas at Rs1,935; 600 bales, Sanghar at Rs1,940 to Rs1,975; 400 bales, Tando Ghulam Muhammad at Rs19,40 to Rs1,950; 200 bales, Jholeat at Rs1,940; and 600 bales, Nawabshah at Rs2,000 to Rs2,015.

PUNJAB VARIETY: 2,000 bales, each Sadiqabad, Rahimyar Khan and Bahawalpur at Rs2,100; 1,000 bales, each Jalalpur, Bahawalpur, Hasilpur, Rajanpur, Shujabad, Ahmedpur East at Rs2,100; 1,000 bales, Gojra and 1,000 bales, Samudri and Mung Bangla at Rs2,075; 600 bales, Haroonabad, 400 bales, Malsi, 600 bales, Yazman, 400 bales, Uch Sharif and 600 bales, Fazalpur at Rs2,100.