19 November 2004	Friday	06 Shawwal 1425

KARACHI, Nov 18: Trading on the cotton market resumed on a firm note after eid holidays as pent-up mill demand figured prominently at the current levels.

There were no reports of fresh business in Sindh variety as local brokers and ginners remained busy in exchanging eid greetings rather than indulging in trading. Normal activity is expected to resume by Friday. But Punjab ginners and spinners appear to be in no mood to extend the eid holiday and resumed normal trading on Wednesday as some of the ginners obliged needy spinners to sell at the higher rates.

Unlike, the pre-eid holiday sessions, ginners confidently held on to their unsold positions, notably for fine lots as strong presence of the TCP seems to have come to their rescue.

Bulk of the activity remained confined to Punjab lint as spinners and mills tried to grab the fine lots at a higher rates. According to local leading brokerage houses about 20,000 bales changed hands at a uniform rate of Rs2,000 per maund, showing an improvement of Rs50 over the pre-eid holiday rates, brokers said.

"Strong presence of the TCP in the market as a second buyer seemed to have reassured ginners that prices could rise from the current levels but will not fall irrespective of crop projections", says a leading broker.

Higher New York cotton futures notably the ruling December settlement was another aiding positive factor.

"The TCP tally up to Nov 12, at 0.708m bales seems to have sent shock waves among the spinners and mills", they said "the fight between the spinners and the TCP to grab the floating stock of fine contamination-free lots could further raise prices". The TCP has so far purchased largest number of bales from Nawabshah at 0.108m bales followed by 0.106m bales from D.G.Khan, the total of Sindh and Punjab being at 0.248m and 0.455m bales respectively.

There was no change in the official rates, which were quoted unchanged at Rs1,920 but in physical trading most of the deals were done at Rs2,000.

New York cotton futures posted a fresh rise of 0.55 cents at 47.14 cents per lb for the ruling December delivery, while the forward March was quoted higher by 0.48 cents at 42.60 cents per lb.