KARACHI, Sept 15: Cotton prices on Thursday remained stable amid active trading as there was no let-up in mill buying on the perception that the current levels may be attractive enough for their export parity levels.

Although some of the leading growers have raised their asking prices well above the official support price, ginners are not inclined to hold long positions and clear the backlog after having made payments to growers, brokers said.

“As the size of the crop is still unclear amid conflicting reports, the spinners are not inclined to take a risk of keep to the sidelines and lifted all the lots being offered by the ginners around the current levels,” they added.

Most of the deals in the Sindh variety are being finalized below Rs2,200 per maund and that of Punjab below Rs2,300, depending on the quality of lint in trade.

“Sustained covering purchases being made by the spinners and mills reflect that they are fully booked as far as the export orders are concerned for the quarter ending December 31, 2005,” ginners said. “Their moping operations reflect that their consumption needs could touch the high mark of 2m bales if their current hunting continues.”

After having purchased 12m bales plus from the ginners and a million bales from the TCP, some of the leading spinners’ groups have also imported 0.311m bales from various sources during the month of April alone, according to official figures.

“Their tally comes to about 14m bales so far at the beginning of new season,” analysts said. “How many more import consignments are in the pipeline only textile sector knows.”

The big mill buying against export orders for textiles showed that the export target of $14 billion for the current year could be achieved as this sector alone contributes 65 per cent to the total.

It was perhaps in this background that prices are stable both in the ready section and in physical trading at around Rs2,150 per maund.

New York cotton futures also came in for active short-covering at the lower levels and recovered 0.23 and 0.14 cents per lb at 48.60 and 49.94 for both the ruling October and the distant December contracts, respectively.

Ready offtake was active as under:

SINDH TYPE: 2,000 bales, Mirpurkhas at Rs2,150; 1,000 bales, Kot Ghulam Muhammad at Rs2,160 to Rs2,165; 400 bales, Sultanabad at Rs2,125; 200 bales, Tando Adam at Rs2,150; 200 bales, Sanghar at Rs2,160 to Rs2,170; 200 bales, Khipro at Rs2,165; and 200 bales, Jhole at Rs2,175.