February 4, 2006	Saturday	Muharram 5, 1427

KARACHI, Feb 3: After remaining static for the last over a week, cotton prices on Friday showed a modest decline of Rs15 per maund on selling by some of the ginners ahead of arrival figures for the last fortnight ended on Jan 31.

Based on the previous fortnight’s figures, showing persistent decline, the latest could be in line with them, which in turn are expected to fuel the current price flare-up, market sources said.

The future price outlook will largely depend on the unsold stocks with the ginners and lower and higher figure will influence price either-way after the arrivals for current fortnight are released, they added.

But spinners and mills did not show much interest to buy at the lower apparently on the perception that prices could ease further from the current higher levels, dealers said.

However, leading ginners, who hold bulk of the unsold stock of fine lots, stayed on the sidelines and did not join their weaker links amid hopes that they could get higher prices depending on their respective holding capacity, they said.

There was, therefore, no change in prices of fine lots, which were quoted around Rs2,550 after some leading spinners group opted for them at the sellers’ option.

The other aiding factor contributing to the firm price outlook was sharp rise in New York cotton futures on speculative buying followed by reports of a pressure on supplies in the coming weeks, floor brokers said.

“The fact that import of lint may be expensive in the coming months, reinforced the ginner perception of a further increase in local rates in sympathy with foreign markets,” they said.

It was perhaps in this background the official spot rates were lowered by Rs15 per maund despite higher prices at which deals are being finalized in the ready section.

New York cotton futures on the other hand rose by 1.36 and 1.11 cents at 57.23 and 58.40 cents per lb for both the ruling March and the distant May settlements respectively on strong demand.

Ready off-take was light amounting to 5,000 bales including 4,000 bales from the upper Sindh ginneries at Rs2,550 per maund.