04 November 2004	Thursday	20 Ramazan 1425

KARACHI, Nov 3: Cotton market on Wednesday passed through another lean session as larger than expected arrivals of phutti into the ginneries continued to inspire fresh selling by the ginners at the lower levels.

Unlike the previous sessions, physical activity was relatively slow as spinners eyeing the US election results, slowed down their daily intake.

Official spot rates were, therefore, further lowered by Rs25 per maund in line with the physical trading at which the ready deals are being finalized, dealers said.

Reports from the TCP are fairly encouraging as it has so far purchased 0.445m bales - 0.158m bales from Sindh and 0.243m bales from Punjab ginneries - up to Nov 3, and its market support operation is continuing steadily.

Although there is difference of about Rs200 per maund in the purchase price of spinners and mills, a section of the ginners still prefers to sell to the mills rather than the TCP for reasons best known to the sellers, brokers said.

The TCP is buying fine export quality lint at Rs2,159 per 40 kg, while ginners are selling the same quality lots to spinners between Rs1,950-2,000 on ready basis, that is prompt payments, they added.

The growers are, however, continued to be on the receiving end as a massive TCP effort to ensure a competitive price to them did not produce the desired results, they said. Not many among them could sell their product at the official support price of Rs925. At one stage, phutti prices in Sindh had dropped to Rs750 per 40 kg.

What seems to have caused price decline in phutti was dumping of the commodity into the ginneries on an unfix basis, leaving payments at the ginners' option. And everyone knows ginner is not that accommodating and continues to take his own pound of flush, market sources said.

Excepting early in the season, when some of the growers managed to sell their early sown phutti around Rs1,000 per 40 kg, they are now panic-sellers without any complaint, they said.

Ready off-take was light as till late in the evening about 15,000 bales changed hands as under:

SINDH VARIETY: 400 bales, Nawabshah at Rs1,950, 400 bales, Nayabad at Rs1,925, and 600 bales, Mirpurkhas at Rs1,820.

PUNJAB TYPE: 1,000 bales, each Burewala, Rahimyar Khan, Sadiqabad, at Rs2,000 to Rs2,025, 1,000 bales each D.G. Khan and Alipur at Rs2,000, 400 bales, Gojra at Rs1,965 and 200 bales, Mian Channu at Rs1,950.