11 November 2004	Thursday	27 Ramazan 1425

KARACHI, Nov 10: Cotton prices on Wednesday remained stable around the previous levels owing to a strong presence of the TCP in the ready market and holding back of phutti stocks by some leading growers.

As a result phutti prices have risen to Rs800-900.00 per maund in Sindh and Rs875-950 per 40 kg in Punjab and brokers predict further increase if the growers continued to hold on to their long unsold positions during the post-Eid holiday sessions.

In physical trading, Sindh and Punjab lint is being sold at around Rs1,825 to Rs1,925 and Rs1,950 to Rs1,975 per maund depending on the quality of lint in trade.

Floor brokers said reports that the TCP had so far purchased 0.614m bales from the ginners in Sindh and Punjab at the official support price of Rs2,159 per 40 kg seemed to have stabilizing impact on the price line.

In the Sindh cotton belt, the TCP lifted highest number of bales from the Nawabshah area, totalling 92,900 bales, and out of the total of 0.400m bales from the Punjab ginners, D.G. Khan topped the list, with 87,600 bales, they said.

The ginners who were selling to the spinners and mills at much lower rates opted for the TCP and are selling them export quality fine type lint to it at a fixed rate, which in turn imparted strength to the market, they said.

The current procurement figure seems to have sent shock waves among the spinners and ginners amid fears that fine lots could be in future in short supply if the TCP maintains its buying operations at the current levels, market sources said.

Meanwhile, reports coming from some of the areas of the central Sindh and the central Punjab say picking operations of phutti have been completed in some of the areas and the growers are preparing the land for wheat sowing.

In other areas, notably in the southern Punjab cotton belt picking operations are well in progress and are expected to be completed early next month, although leading growers are holding back their stocks to secure a better price at the fag-end of the season.

Official spot rates were firmly held at the last levels, although fine lots were sold at slightly higher rates. New York cotton futures on the other hand rose by 0.21 and 0.28 cents per lb at 44.04 and 43.49 cents per lb for both the ruling December and March contracts, respectively.

The following are details of some of the notable deals reported on Tuesday evening:

SINDH TYPE: 200 bales, each Tando Adam and Shahpur Chakar at Rs1,850; and 1,000 bales, Nawabshah at Rs1,925.

PUNJAB VARIETY: 3,000 bales, Haroonabad at Rs1,975 to Rs2,000; 1,000 bales, Hasilpur at Rs1,950 to Rs1,975; 1,000 bales each, Bahawalpur and Khanpur at Rs1,975 to Rs2,000; 1,000 bales, Rahimyar Khan at Rs1,985 to Rs2,000; 1,000 bales, Sadiqabad at Rs2,000; and 400 bales, Faqirwali also at this rate.