May 3, 2006	Wednesday	Rabi-us-Sani 4, 1427

KARACHI, May 2: Trading on the cotton market on Monday resumed on a firm note as pent-up demand from the leading spinners figured prominently amid modestly traded session.

Brokers reported some big lot business at a uniform rate for the fine lots around Rs2,475 amid market talk that it conforms to the parity level of both the buyers and the sellers.

In the absence of a fresh float of a tender for cotton sales, spinners and mills have opted for the local buying fearing pressure on supplies in the coming weeks followed by reports of falling unsold stocks with the ginners, they added.

Final arrival figures of phutti for the fortnight ended April 30, 2006 are due possibly by Wednesday, which are expected to set future market course before the arrival of the new crop, some others said.

Indications are that the figure of unsold stocks may fall below half a million bales, while mills still need about 4.5m bales to meet their annual consumption needs.

The recent increase in the New York cotton futures above the 50 cent mark may create some import problems for the spinners and that is perhaps why they accelerate their local buying fearing further increase in prices, market source said.

But the consensus view about the future supplies and demand will be available after the arrival figures are released by the Pakistan Cotton Ginners Association (PCGA).

New York cotton futures were marked modestly higher by 0.25 and 0.15 cents per lb at 50.15 and 51.57 cents per lb for both the maturing May and the distant July contracts, respectively.

Local official spot rates on the other hand were firmly held at the last level of Rs2.425 per maund but most of the deals in the ready section were done above them.

The following are some of the deals, which gone through in the ready section; 1,200 and 1,763 bales, Rahimyar Khan at Rs2,475.00, 1,000 bales, Muhammadpur Dewan at 2,435 and 1,000 bales Chanigoth at 2,475.