September 06, 2006	Wednesday	Sha'aban 12, 1427

KARACHI, Sept 5: Active trading was witnessed on the cotton market on Tuesday as spinners continued to make panic buying amid rumours of an imminent fresh price flare-up.

Some of the leading spinners again indulged in big-lot business in an effort to cover their forward positions against foreign sales of cotton yarn and textiles, brokers said.

However, unlike the previous sessions prices remained stable around the overnight levels both for the Sindh and the Punjab varieties, which in turn allowed spinners to expand their ready off-take, they said.

While Sindh type was traded between Rs2,610 and Rs2,690 per maund, Punjab variety was traded at uniform rate of Rs2,750.

Brokers said phutti prices were firmly held above Rs1,200 per 40 kg as growers were not inclined to lower their asking prices having a clear idea of the crop size.

But spinners said their panic buying did not reflect that the current rates were in line with their export parity levels, they had no option but to keep the wheels moving hoping better world prices for their products in the coming months.However, for time being a crisis-like situation is developing in the cotton economy owing to talk of a short crop, which is fuelling the current price flare-up, they said.

Meanwhile, mills were awaiting the arrival figures of phutti for the month of August. The data would give a fair idea of the total crop and its likely impact on the cotton trade in the months to come.

Official spot rates were, therefore, held unchanged at the overnight level of Rs2,625 per maund, although spinners were buyers above them.

Ready business was on the higher side totalling about 10,000 bales, the following being some of the notable deals.

SINDH VARIETY: 1,200 bales, Mirpurkhas at Rs2,610 to Rs2,620, 800 bales, Shahdadpur at Rs2,650 to Rs2,660, 800 bales, Tando Adam at Rs2,650 to Rs2,690, 200 bales at Rs2,650 and 1,200 bales, Sanghar at Rs2,650.

PUNJAB TYPE: 400 bales, Sahiwal at Rs2,725 to Rs2,750, 400 bales, Haroonabad, 200 bales, Chichawatni, 400 bales, Pir Mahal, 300 bales, Bahawalnagar and 400 bales, Burewala at Rs2,750.