16 January 2005	Sunday	05 Zilhaj 1425

KARACHI, Jan 15: Cotton market on Saturday lacked normal trading interest as both buyers and sellers held on to their positions apparently awaiting the release of official arrival figures of phutti by the Pakistan Cotton Ginners before the eid holidays.

The other negative factor which significantly aided to the prevailing dullness was reports that the total crop figure could touch an all-time high mark of 14.6m bales plus, brokers said.

The Crop Monitoring Committee in its recent meeting held in Lahore has put the crop estimate at 14.6m bales plus, a real bonanza for the textile sector which is full of export orders.

"Above normal supply of fine lint at competitive prices after several lean years could give tremendous boost to textile exports", says a leading spinner adding "the foreign demand of both yarn and cloth is steadily picking up despite reports of global production glut".

With growers already out of the market, ginners are a bit worried as larger crop could well lead further fall in prices", predicts a leading ginner and the current slowdown in TCP buying may intensify the selling.

After having purchased about 2.6m bales, the Trading Corporation of Pakistan (TCP) has slowed down its daily purchases apparently awaiting the release of fresh funds from the central bank.

Market sources predict future price outlook would be clear during the post-eid sessions as by that time supply and demand figures were available, which would give a fair idea of the total crop.

Spinners have curtailed their daily covering purchases because of delivery problems and no one among them is inclined to make bigger commitments before the eid holidays as any thing negative could happen in between, they said.

The local market is not following the price trend of New York cotton futures but rather demonstrates it independent behaviour based on the local supply and demand factors, they added.

Official spot rates were, therefore, firmly held at the previous level of Rs2,075 per maund, while New York cotton futures showed either-way movement. Ready off-take was light totalling 5,000 bales as under: 400 bales, upper Sindh at Rs2,050, 1,000 bales, Sadiqabad at Rs2,000, 400 bales, Rahimyar Khan at Rs2,050 and 300 bales, Kabula at Rs2,100.