June 07, 2006	Wednesday	Jumadi-ul-Awwal 10, 1427

KARACHI, June 6: The cotton market maintained a steady trend as the post-budget session witnessed active buying by mills from the central Sindh ginneries. However, the initial reaction of both the ginners and the brokers to the new budget was positive as there were no major upsets in the status quo as far as the reliefs were concerned, market source said.

“The new budget is silent on the reliefs or taxes on the textile sector,” says a spinner but hopes “a separate textile package containing reliefs is expected to be announced later.”

As the performance of the cotton market is essentially linked to the textile sector, ginners were also said to be following the spinners awaiting the announcement of the new package, they added.

According to them the government was inclined to push textile export from the current $10 billion to $14 billion after having met some of its major demands, which could push exports.

Ginners are expected to be chief beneficiary of the new package during the new season if all goes well with the new crop depending on the supply of irrigation water to tail-enders in the Sindh, brokers said.

Meanwhile, reports coming from the lower Sindh cotton belt indicate that the picking operations have been delayed owing to late sowing of the new crop because of shortage of irrigation water.

Official spot rates were again firmly held at the last levels, although ginners entertained higher price ideas for the fine lots.

New York cotton futures on the other hand showed mixed trend. While ruling July fell by 0.28 cents at 52.64 cents per lb, October contract rose by 0.20 cents at 56.40 cent per lb on modest speculative support.

Ready off-take was light totalling 3,000 bales as under: 1,000 bales, Mirpurkhas at Rs2,550 and 1,400 bales, Moro at Rs2,425 to Rs2,475.