March 21, 2006	Tuesday	Safar 20, 1427

KARACHI, March 20: Cotton prices on the local market on Monday showed a modest decline as some of the ginners lowered their selling prices for the average stuff amid slow trading.

Reports that the TCP has sold over 50,000 bales in its last week’s tender in line with the international prices seem to have worried those ginners who still hold long unsold positions and lowered their asking prices, broker said.

Market sources said both the foreign and local prices at which the TCP disposed of a big quantity were competitive, local textile industry being the major buyer, while 14,000 bales went to the credit of foreign buyers.

But mill demand was not that aggressive as they along with spinners are eyeing the next TCP tender because of quality factor rather than making fresh commitments on the ready counters, they said.

“Ginners are worried over the developing situation on the cotton front and said it would have better for the TCP to resume selling after the ginners have exhausted their long positions to forestall further fall in prices.”

According to latest official figures, the ginners still hold an unsold stock of 1.5m bales worth about Rs18 billion — a huge amount viewed in the backdrop of their financial positions.

Leading among the ginners who hold bulk of stock fear a further decline in prices during the coming sessions, as the spinners are expected to remain conspicuous by their absence in an apparent effort to push prices further down, some others said.

Meanwhile, private sector exporters have registered another 10,000 bales with the Export Promotion Bureau against their forward sales to a number of foreign buyers, totalling 0.242m bales up to March 15.

Official spot rates were marked down by Rs25 at Rs2,425 per maund for an average quality lint, but there were not many buyers at the decline.

Ready business was light totalling 1,200 bales, Rahimyar Khan at Rs2,435 to Rs2,475 per maund.