August 29, 2006	Tuesday	Sha'aban 4, 1427

KARACHI, Aug 28: Active trading was witnessed on the cotton market on Monday as reports of damage to crop in both the Sindh and the Punjab cotton belts continued to inspire fresh mill buying.

In physical trading most of the deals were done Rs25 per maund higher as spinners and mills extended guarded support to keep prices within the current range.

“I don’t rule out the possibility of speculative increase in prices in the coming sessions,” says a leading broker, adding “as the reports about the damage to crop pouring in prices could rise further”.

Crop surveys, conducted by some private agencies, indicate there is damage to standing crop but it is pretty difficult at this stage to calculate losses in percentage term, he added.

However, tactical support being extended by the spinners managed to keep prices within their parity levels but the future direction is still unclear.

Meanwhile, reports coming in from the central Sindh cotton belt indicate that picking operations of phutti have been resumed in most of the areas as the fields had dried up.

Arrivals of phutti into the ginneries are steadily picking up which in turn could have negative impact on the prevailing prices, some spinners hope.

Official spot rates were, therefore, revised upward by Rs25 at Rs2,500, although most of the deals in ready section were done above them.

Ready off-take was modest totalling 2,000 bales, the following being some of the notable deals: 400 bales, each Shahdadpur and Tando Adam at Rs2,525, 200 bales, Mirpurkhas also at Rs2,525, 200 bales, Chichawatni at Rs2,645 and 400 bales, Sahiwal at Rs2,650.