January 26, 2006	Thursday	Zilhaj 25, 1426

KARACHI, Jan 25: Active trading was witnessed on the cotton market on Wednesday as spinners and mills remained active buyers around the current levels for the fine lots.

While the fine lots were traded between Rs2,500 and Rs2,550 per maund, inferior ones were sold at around Rs2,310, although the spinners opted for the former.

Floor brokers said the spinners were striking a judicious balance in the ready offtake and prevailing rates in an effort to keep prices within the current levels and modest ready offtake reflects that perception behind it.

Ginners also seem to be satisfied with the current selling rates as they continued to unload in part their long positions amid hopes that prices could rise from the current levels during the next couple of weeks, they said.

A modest ready daily business of 20,000 to 30,000 bales as compared to 50,000 to 60,000 bales in normal trading during the mid-season reflects that the spinners are keeping an eye on the supply factors in the backdrop of a below target crop, some others said.

Market sources said export of both cotton yarn and textiles was progressively picking up amid reports of an improvement in the export parity levels, which in turn could enhance spinner’s competitiveness in the world market during the fag-end of the current season.

However, the spinners are reluctant to opt for further imports owing to higher New York cotton prices and are trying to covered positions from the local market around the prevailing prices, they added.

Meanwhile, reports coming from the major cotton growing areas show that ginning operations for the current season have been completed and ginners are trying to get out of their long unsold positions.

Official spot rates were, therefore, again held unchanged but in the ready section prices fluctuated between Rs2,500 and Rs2,550 per maund.

New York cotton futures on the other hand suffered a fractional decline of 0.18 and 0.8 cents at 56.60 and 57.66 cents per lb for both the ruling March and distant May contracts, respectively.

Ready offtake was active totalling about 20,000 bales, the following being some of the notable deals: 1,000 bales, upper Sindh at Rs2,550; 2,000 bales, Ahmedpur East, 1,000 bales, Kabirwala and 600 bales, Dynyiapur at Rs2,550; 1,200 bales, Bahawalpur at Rs2,500 to Rs2,525; 200 bales, Burewala and 3,300 bales, Gojra at Rs2,500; 1,500 bales, Sadiqabad at Rs2,500 to Rs2,550; 1,000 bales, each Mamon Kanjan and Mian Channu at Rs2,310.