February 24, 2006	Friday	Muharram 25, 1427

KARACHI, Feb 23: Cotton market on Thursday maintained a firm outlook as ginners held on to their positions aided by perception of a short crop and fresh rise in prices in the coming weeks.

Unlike the previous actively traded sessions, spinners and mills were also appeared to be reluctant buyers and enter and leave the market according to their buying strategy, brokers said.

The rise and fall in the mill demand was apparently to contain prices within the current range, they said, adding “ginners are also well aware of the developing situation on the supply and demand fronts are not worried over the falling mill demand”.

The general market perception is that the arrival figures of phutti for the fortnight ending Feb 28, will give the clear picture of the total crop as by that time some of the leading ginners holding long positions may unload in part their unsold stocks, they said.

“How the mills will meet their consumption demand owing to possible crop shortfall will set the future market trend”, analysts said, adding “but they ruled out a price flare-up, stray upward changes notwithstanding”.

However, one thing appears certain that ginners are not worried over their larger unsold stocks and hope for a better prices in the months to come as spinners may be at the receiving end before the new crop arrives from the lower Sindh ginneries by early July, they added.

Official spot rates were, therefore, again held unchanged at the previous levels, although stray business was reported above them.

New York cotton futures on the other hand rose by 0.22 and 0.81 cents at 56.90 and 57.20 cents per lb respectively on revival of speculative demand.

Ready off-take was modest totalling 2,000 bales as under: 800 bales, upper Sindh at Rs2,575 and 800 bales, Rahimyar Khan at Rs2,550. Unconfirmed reports said another 4,000 bales also changed hands from the southern Punjab ginneries.