05 November 2004	Friday	21 Ramazan 1425

KARACHI, Nov 4: Trading activity on the cotton market on Thursday was relatively slow as leading spinners and mills kept to the sidelines most of the time, entertaining the idea of fresh hasty selling by ginners.

The slowdown in daily offtake was also attributed to some delivery problems being faced by the spinners and mills as cargo haulers had increased their fare owing to larger booking by the TCP, dealers said.

Official spot rates were, therefore, further revised downward by Rs25 in line with those in physical trading but some leading ginners held on to their positions and did not follow the general line of action.

The arrivals of phutti from the fields to the ginneries seem to have changed the entire supply and demand situation as the growers are out to clear their stocks irrespective of the price being offered to them, market sources said, adding that most of them are disappointed as the official intervention failed to ensure a fair price to them, notably to small growers.

The TCP on the other hand remained active and signed contracts for another 24,100 bales both from Sindh and Punjab ginners, the total purchases so far being 0.469m bales, according to official figures.

Nawabshah in the Sindh cotton belt is on top of the TCP list from which the corporation has purchased 76,900 bales so far followed by Haroonabad in Punjab from where it has purchased 66,800 bales so far.

To keep the export outlets open, the TCP has invited international tender for a consignment of 20,000 bales and bids are claimed to be under process by the relevant division of the TCP.

Regular export sales by the TCP is expected to keep its statistical position in regard to unsold stocks in order as its current buying operations need steady outflow of the commodity to various countries, the sources said.

However, the ginners could not precisely decided whether to sell at the lower rates to the spinners and mills or opt for the TCP for a better price, brokers said, adding that the weaker links among them are trying to get out of the market after selling their stocks at the lower levels.

Ready offtake was light totalling 12,000 bales mostly from the Punjab cotton belt, the following being some of the notable deals: 800 bales, Gojra at Rs1,950; 1,000 bales, each from some other central Punjab stations between Rs1,950 and Rs2,000.

Sindh type was traded between Rs1,850 and Rs1,950, and about 4,000 bales from Sanghar, Mirpurkhas, Tando Adam and Shahdadpur changed hands.