July 22, 2006	Saturday	Jumadi-ul-Sani 25, 1427

KARACHI, July 21: Physical activity on the cotton market on Friday remained slow as spinners and mills extended guarded support and lifted only those lots which conformed to their export parity levels.

Although stray fresh business was reported in the lower Sindh new crop mostly on ready basis, reflecting that arrivals of phutti into ginneries were picking up each day, brokers said, adding: “Ginners are interested to sell freshly ginned lint on ready basis rather than opting for forward deals at slightly higher rates.”

Identical reports were also arriving from the central Punjab cotton belt where Punjab-based spinners were said to be fairly active and lifting all the lots on ready basis, they added.

Unlike the current crop, which is being offered by the ginners at much higher rates, the new crop though of a low-mic as compared to the former is available at lower levels, spinners said.

“The lint from central Sindh ginneries is blended with polyester fibre to produce blended cloth and cotton yarn for both local and foreign markets,” says a spinner.

Of late a pickup in blended yarn demand from foreign buyers, the use of polyester fibre had increased to more than 30 per cent, which in turn had cut on the lint demand at the same percentage, he added.

Meanwhile, reports reaching from the lower Sindh cotton belt claim pest attack in some of the areas, but the damage caused to the bolls is said to be below the economic injury level and is being controlled by extensive spraying on the standing crop in the affected areas.

Official spot rates were firmly held at the last levels but phutti prices showed a modest rise and on average growers are getting Rs1,125 to Rs1,150.00 per 40kg.

Ready offtake was light totalling about 800 bales of new crop from lower Sindh ginneries, including 200 bales from a Sanghar ginnery at Rs2,475 per maund.