09 February 2005	Wednesday	29 Zilhaj 1425

KARACHI, Feb 8: Physical trading on the cotton market remained on the lower side as price ideas of buyers and sellers were poles apart despite quality differentials.

As the ginners were not obliged spinners to sell fine lots below Rs2,000 per maund, they opted for average lint both from the central Sindh and southern Punjab ginners.

However, standoff on daily off-take continues, although unconfirmed reports indicate that the lifting by spinners and mills are on the higher side as some of the ginners are inclined to sell their odd lots to close the season, brokers said.

"The stocks of fine lots may not be that adequate to meet the mill demand", they said adding "bulk of it has already been cornered by the TCP with a tally of 2.5m bales, mostly of fine quality."

Stray lots here and there, notably in upper Sindh and southern Punjab, may be lying with the ginners but they are holding on to them amid predictions of further increase in prices.

Market sources said the future direction of the market would essentially be led by the unsold stocks lying with the ginners as the arrival figures of phutti for the fortnight ending Feb 15 is expected to give a fair idea of the total crop.

Sharp decline in the arrival figure to a modest total of about 0.3m bales during the previous fortnight has already sent panic signals among the mills and spinners but they regulated their daily purchases in an apparent effort to forestall any speculative increase in prices, they said.

"The lint would be in short supply during the next couple of weeks and it may not be that easy to check a price flare-up if the TCP does not come to aid of spinners", cotton brokers fear.

New York cotton futures are also heating up as the world demand is picking up and that may trigger sympathetic rise in local prices in weeks to come.

The ruling March and May settlements were quoted modestly higher by 0.04 and 0.07 cents per lb at 43.24 and 44.60 cents respectively.

There was, however, no change in the local official spot rates, which were held unchanged at Rs2,125 per maund.

Ready off-take was light totalling about 4,000 bales, the following being some of the notable deals: 600 bales, upper Sindh at Rs2,075, 400 bales, Sarhari at Rs2,100 and 1,000 bales, Khanpur at Rs2,190.