12 November 2004	Friday	28 Ramazan 1425

KARACHI, Nov 11: Trading activity on the cotton market on Thursday was terribly insipid as spinners and mills were conspicuous by their absence owing to transport problems.

Prices eased modestly from the previous levels in the absence of strong mill demand as some of the ginners tried to get out of their long positions before Eid holidays.

However, there was no evidence of pre-holiday mood, which could overtake the market possibly on Saturday as some of the ginners and spinners were in talks for prompt supplies from their local godowns, brokers said.

"Immediate deliveries from the ginneries are not readily at hand as cargo haulers have not only raised their fares but also are not inclined to deliver the consignments before Eid," spinners say.

They, therefore, remained off the market and did not go beyond certain lots amid hopes prices could fall further from the current levels after growers resume deliveries of phutti to the ginners.

Some of the ginners claimed growers in the southern Punjab cotton belt had resumed phutti supplies to some selected ginners but leading among them were still holding on to their unsold stocks.

Brokers said there could be a price war between the ginners and the growers in the post-Eid sessions as the former would try to link phutti prices with lint, while the latter would not sell below the official rate of Rs925 per 40 kg.

"The holding capacity of the grower is expected to set the future price outlook in the backdrop of higher arrivals during the last couple of fortnights", they said.

The two million bales increase in the phutti arrivals during the last fortnight has already pushed lint prices sharply lower and if the TCP has not played the role of a market stabilizer they have dropped further lower, some other said.

In the absence of strong mill demand official spot rates were firmly held at the last levels but in physical trading some of the deals were done below them.

The following some of the deals, which gone through on Thursday evening: 400 bales, Nawabshah at Rs1,900 and 400 bales, Mirpurkhas at Rs1,800, 400 bales, Dewan Muhammad at Rs1,975, 400 bales, Hasilpur at Rs1,950, and 600 bales, Muridwala also at Rs1,950.