05 February 2005	Saturday	25 Zilhaj 1425

KARACHI, Feb 4: Modest trading was witnessed on the cotton market on Friday as spinners curtailed their daily off-take owing to Saturday's closure on annount of Kashmir day and allied delivery problems.

But some big-lot business was reported as spinners and mill continue to pay more for fine lots as they need it for higher counts of cotton yarn and fibre for the export markets, brokers said.

Most of the deals were finalized between Rs2,100,00 and Rs2,200 per maund depending on quality of lint, with upper Sindh and southern Punjab lint remaining on the top in terms of quality and its fibre length, market sources said.

Some of the leading ginners still holding modest quantity of contamination-free lint have raised their asking prices above Rs2,200 per maund but spinners appear to be in no mood to oblige them, they said.

"Being now sole buyers in the absence of the TCP, and steady prices, spinners and mills are in no hurry and enter and leave market at will," they said adding "low daily off-take is reflective of this phenomenon."

Some inferior lots also changed hands from the cental Sindh cotton belt and brokers claim most of them went to the credit of private sector exporters who are also active on the export front despite a terribly volatile price outlook.

Meanwhile, reports trickling in from the spinning weaving sectors show that the mill intake of polyester fibre is being maintained around 30 per cent widely used for blending purposes for export markets and that is perhaps why spinners and mills are "going a bit slow".

The market did not react negatively to the steep decline in New York cotton futures and was literally guided by the local supply and demand factors, brokers said. New York cotton futures finished with an extended fall of 1.15 and 1.11 cents per lb at 43.12 and 44.64 cents per lb for both the ruling March and the forward May contracts.

The local official spot rates on the other hand consolidated their overnight gain and were firmly held at the previous levels. Ready business was light totalling about 10,000 bales, the following being some of the notable deals: 2,000 bales, Gojra at Rs2,100, 500 bales, Khanpur at 2,200, 2,000 bales, Sanghar at 1,985 to 2,000.00, 450 bales, Nawabshah at 2,050 and 3,000 bales, upper Sindh at Rs2,175 to 2,200.