August 19, 2006	Saturday	Rajab 23, 1427

KARACHI, Aug 18: Trading activity on the cotton market on Friday remained cheerless as post-Thursday rain scenario kept buyers and sellers away owing to delivery problems.

Late Thursday’s heavy downpour in the city has created more than one problem both for the ginners and spinners as was reflected by falling ready business as both the picking operations of phutti and ginning remained suspended.

Cotton analysts fear an impending pressure on supplies in the sessions to come as damage caused to standing crop in some of the areas where the downpour was heavy is still to be assessed.

But one thing is clear that the cotton crop is highly sensitive to heavy rain and in most cases suffered decline both in the quality and the per acre yield, they added.

However, to neutralise the negative impact of damage to standing crop in the Sindh cotton belt and the consequent fears of a price flare-up, spinners and mills remained out of the market for most of the time, brokers said.

Although some of the brokers reported stray business for delivery next week at Rs2,450 per maund, the general interest was lacking amid forecast of more rain in the Sindh cotton belt.

Ginners said where rain water in the cotton fields is not dried up because of persistent rain, the crop may be damaged there for various reasons including excessive water, which hampers the growth of newly sown cotton.

Official spot rates were again held unchanged at the overnight level but some of the deals done in the ready section were done above and below them depending on the quality of lint in trade.

About 800 bales of lint both from the lower Sindh and central Punjab changed hands at an average price of Rs2,450 per maund, Karachi delivery.