August 26, 2006	Saturday	Sha'aban 1, 1427

KARACHI, Aug 25: Trading activity on the cotton market on Friday modestly picked up as spinners and mills resumed their normal covering operations against forward sales. Most of buying offers from spinners failed to get the required number of bales as ginners raised asking prices but some of their weaker links obliged them.

Market sources foreseeing a pressure on ready supplies followed by reports of damage to cotton crop in the Sindh cotton belt, spinners seem to have decided to be back in the market to cover positions at the current levels.

But there is a loud whispering among the ginners about the buying strategy of the spinner cartel to keep prices within the current levels after indulging in regulated buying sans panic, they said.

Brokers said new crop from Sindh was traded between Rs2,475 to Rs2,525, while those from the central Punjab were sold at Rs2,600 to Rs2,625 per maund depending on the quality of lint.

They said reports of fresh rain in the Sindh cotton belt did not allow normal picking operations as cotton fields were still wet and in some areas rain water was not dried up.

However, picking operations of phutti in the central Punjab cotton belt was said to be normal as arrivals of phutti into the ginneries were steadily picking up.

Official spot rates were again firmly held at the last level of Rs2,475 per maund but in the ready section most of the deals were done above them.

New York cotton futures on the other hand resisted fresh fall and showed fractional rise of 0.5 cents each for both the ruling October and the distant December contracts at 53.10 and 55.13 cents per lb respectively.

Ready off-take was modest totalling about 1,500 bales, the following being some of the notable deals: 400 bales, Tando Muhammad at Rs2,475, 100 bales each, Tando Adam and Hala at Rs2,510, 100 bales, Ghaziabad at Rs2,600, 100 bales, Chichawatni, Burewala and Sahiwal at Rs2,625.