01 March 2005	Tuesday	19 Muharram 1426

KARACHI, Feb 28: An active trading was again witnessed on the cotton market on Monday as most of local spinners tried to grab the floating stock below Rs2,400.

Some big-lot businesses were reported for fine types as the spinners picked up all the lots offered below Rs2,400 per maund, both from upper Sindh and southern Punjab ginneries.

As a whole, ready offtake was far below the normal average daily figure as a section of spinners awaited the arrival figures for the fortnight ended Feb 28, 2005, which will guide them to formulate their future price strategy, brokers said. But leading spinner and mill groups are said to have a big shopping list on the international markets amid fears that the local crop may be short of their annual consumption demand, which could cause further increase in prices having a negative impact on their export competitiveness.

Market sources said the details of their forward purchases for the March-June quarter are not immediately available. Some of the spinners claim a figure of 0.7m bales, shipments against which are expected to resume sometime in April. However, reports of forward deals did not push local prices from the current levels. They have checked a speculated fresh increase in prices to the level of Rs2,500 per maund.

"Having a clear idea of supply and demand situation some in early December, leading spinners and mills have opted for forward deals as by that time New York cotton futures were fluctuating between 40 and 44 cents per lb and the rate was line with their parity level," cotton analysts said.

They said that at the current level of 48 cents per lb, the import of foreign lint might not be that attractive and the spinners would try to get out the foreign market until the final figures of the local crop were out. Official spot rates were again held at the previous levels, although some of the deals were done well above them.