09 November 2004	Tuesday	25 Ramazan 1425

KARACHI, Nov 8: Cotton market on Monday re-opened on a higher note amid reports of drying up of arrivals of phutti into the ginneries as growers held on to their unsold positions apparently to give the needed boost to the falling prices.

Most of the deals in physical trading were done higher by Rs25-50 per maund depending to quality of lint as compared to weekend rates. Sindh lint was sold at Rs1,800-1,950 and that of Punjab at Rs1,975-2,000.

"After having sent well over 7m bales of phutti into the ginneries so far now it is our turn to set the market direction", says a leading grower "we are holding on to our stocks and we will decide our future line of action during the post-eid holiday trading".

Market sources said the cotton market is expected to again pass into the hands of growers as they did earlier in the season and there could be a sharp increase in prices of both phutti and lint during the posti-eid sessions.

"General grower has already dumped his stocks into the ginneries after he realized that the intervention of the TCP and the exporters could not come to their aid and ensure a fair price for their produce", they said.

But most of the leading and progressive growers did not follow the general line of dumping the commodity and held on to their positions on the strength of their sound financial footing, they said.

"I think the market is again passing into the hands of the growers", fears a spinner "big growers have already stopped sending phutti into the ginneries, which in turn has already boosted prices by Rs50."

They are expected to hold on to their unsold positions until phutti prices rose above the support price and then may assume the role of trend-setters in the coming weeks, some ginners also fear.

But some leading cotton consultants predict the fall in arrivals could be temporary as growers could not hold on to their stocks beyond certain period as holding phutti for a long period will damage its quality owing to heat it emits in the godowns.

The actual trend of the market will be known after the eid when delivery problems may not be that acute as they are now owing to transport problems, brokers said.

Official spot rates were revised upward by Rs20 per maund at Rs1,920 per maund in line with the ready rates at which business was transacted on Sunday evening.

The following are some of the details of ready business finalized on Saturday and Sunday.

SINDH TYPE: 200 bales, Mirpurkhas at Rs1,775, 200 bales, and 400 bales, Jhole and Shahdadpur at Rs1,825, 400 bales, Qazi Ahmed and Jamdatar at Rs1,875, 400 bales, Dadu, 500 bales, Dharki and 500 bales, Gothki at Rs1,975 and 600 bales, Sanghar at Rs1,750-1,800.

PUNJAB VARIETY: 500 bales, Haroonabad at Rs1,950, 1,000 bales, Hasilpur at Rs1,950-1,985, 1,000 bales, each, Burewala, Bahawalpur at Rs1,950-1,975, 2,000 bales, Ahmedpur East at Rs1,950-2,000, 1,000 bales, D.G.Khan and 500 bales, Faqirwali at Rs1,950.