September 12, 2006	Tuesday	Sha'aban 18, 1427

KARACHI, Sept 11: Trading on the cotton market on Monday resumed on a firm note as ginners again raised their asking prices followed by reports of sharp fall in arrival of phutti owing to last two days fresh rain in the Sindh cotton belt.Some of the deals were finalised as higher as Rs2,750 in the Punjab variety, Rs50 higher than previous week’s closing rates, while

Sindh variety was traded around Rs2,675 per maund on the higher side.

Physical activity, however, shrank to a modest proportion, as spinners were not inclined to bid at the rising prices, awaiting pickup in arrivals during the next couple of sessions, floor brokers said.

They said fresh rain on last Saturday and Sunday had disrupted the picking operations of phutti, as both the quality and staple fibre of the lint were damaged in wet conditions.

Ginners who are said to be purchasing phutti around Rs1,400 per 40 kg are expected to further raise their asking prices based on the basic raw materials plus overhead costs, they said.

“Added to it is reported damage to standing crop by rain and pest attack,” ginners said, adding: “Prices could rise further if growers raised their prices.”

But spinners seem to have unanimously decided to play safe and not resort to panic buying at least until some official word on the damage to the crop is announced.

According to unofficial surveys conducted by private agencies, the damage figure was put between eight and 10 per cent but the actual position would be known by the end of the current month, they said.

Official spot rates were revised upward by Rs50 at Rs2,625 after last week’s two downward revision of the same amount.

Ready offtake was light as spinners were not inclined to bit at the rising prices and fell to 5,000 bales as under: 200 bales, Shahdadpur at Rs2,675; 600 bales, Mirpukhas at Rs2,600; 200 bales, each Pak Pattan and Khanewal at Rs2,725; and 200 bales, Burewala at Rs2,750.