May 17, 2006	Wednesday	Rabi-us-Sani 18, 1427

KARACHI, May 16: Cotton prices on Tuesday were quoted further higher by Rs25 per maund as spinners made frantic efforts to grab the floating stock but ginners held on to their unsold positions.

An idea of future price perceptions may well be had from the fact that a big lot was sold at season’s peak level of Rs2,550 per maund and some of the ginners who still hold an unsold stock of half a million bales are entertaining further higher levels in the weeks to come, brokers said.

“Spinners and mills seem to be a bit jittery about the future supply position amid fears of an imminent price flare-up expected to be caused by irrigation water problems and falling stocks,” they added.

What worried them was pressure on local supplies as the TCP has already sold bulk of its stock during the last three months through auctions and increase in world prices.

Reports suggest China has resumed foreign buying to cover forward positions of its textile sector, which in turn is progressively heating up the New York cotton futures market in turning others, floor brokers said.

An evidence of panic buying offers against the TCP tender for 30,000 bales is well reflected in buyers’ bids, which totalled 0.105m bales, more than three per cent higher than the actual number of bales on sale, they added.

The highest and lowest prices offered by the spinners and mills were Rs2,450 and Rs2,331, respectively, while foreign buyers offered to buy them at 47.67 and 46.70 cents per lb in that order, TCP sources said.

The TCP evaluation committee will decide on Wednesday acceptance or rejection of the bids after having gone through all the bids.

Official spot rates were revised upward by Rs25 per maund to Rs2,475, but in the ready section some of the deals were finalized at much higher rates.

New York cotton futures on the other hand suffered modest decline of 0.45 and 0.29 cents per lb for both the ruling July and new crop October settlements at 51.60 and 54.70, respectively.

Ready offtake was light totalling 3,000 bales from Khanpur and Bagho Bahar ginneries at Rs2,550 per maund.