February 1, 2006	Wednesday	Muharram 2, 1427

KARACHI, Jan 31: Cotton market on Tuesday lacked normal trading interest as spinners kept to the sidelines most of the time apparently anticipating fall in the prevailing prices.

But ginners though holding long unsold positions were not inclined to lower their asking prices on the perception that the market is sure to heat up during the next couple of weeks when the supply and demand factors would be at work, floor brokers said.

Stray lots did change hands as some of the leading spinner groups opted to buy fine lots around Rs2,550 per maund but ginners were said to be sellers at Rs2,600 for the same quality, they said.

The current decline in the New York cotton futures encouraged spinners and mills to go slow as the current speculative pressure on the world prices could lower them further, they added.

“We are awaiting further fall in New York cotton futures and intend to go for the US lint after it falls in line with our export parity levels”, says a leading spinner.

The fact that New York cotton has failed to attain its benchmark of 60 cents per lb after several attempts despite a lot of speculative activity and lower world cotton production in the major producing areas has raised hopes among the local spinners that prices may remain competitive, market sources said.

But ginners are least worried over the recent developments and are firmly holding on to their positions amid hopes that lower crop could add to their profits in the coming weeks, they added.

Some of them also expect that the arrival figures for the fortnight ended Dec 31, could set the market’s future trend and expect the return of spinner and mills after the release of PCGA figures.

Official spot rates were again held unchanged in the absence of strong feedback from the ready counter owing to slow ready off-take.

In the ready section, the following deals were reported: 1,400 bales, Sadiqabad and 1,000 bales, Ahmedpur East at Rs2,550, 1,000 bales, Rahimyar Khan at Rs2,500 and 200 bales, inferior type at Rs2,475.