September 13, 2006	Wednesday	Sha'aban 19, 1427

KARACHI, Sept 12: The cotton market on Tuesday maintained a firm trend as spinners and mills continued to build up long positions around the current levels amid fears of a short crop.

Lint from Sindh ginneries was traded between Rs2,550 and Rs2,625 per maund, while the Punjab variety changed hands around the overnight levels of slightly above Rs2,700.

A leading spinner group is reported to be indulging in a big-lot business based on its own crop surveys that the crop is short more than speculated by various agencies.

“The post-rain pest attack on some of the central Punjab cotton districts could terribly upset the official crop projection figures based on acreage,” cotton analysts said.

With the Sindh cotton belt battered by early and late monsoon rains, bad news from Punjab could cause a fresh price flare-up in the coming week, having negative impact on the export sales, they said.

The cotton economy appeared to be heading to a crisis of supply and demand and the textile sector might remain at the receiving end if corrective steps were not taken, some others said

The spinners and mills are well aware on the developing situation on the cotton front and are said to be probing the world markets for imports to make up the local crop shortfall, they added.

The official arrival figures for the fortnight ending Sept 15 will give a fair idea of the crop situation as well as future price outlook, they said.

Official spot rates were, therefore, firmly held at the previous levels although most of the deals were done well above them.

Ready offtake was active totalling 10,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,000 bales, Shahdadpur at Rs2,600 to Rs2,665; 300 bales, Khipro at Rs2,550 to Rs2,575; 400 bales, Tando Adam and Sanghar at Rs2,600; 600 bales, Shahpur Chakkar at Rs2,600 to Rs2,615; 500 bales, Sultanabad at Rs2,570 to Rs2,625; and 500 bales, Mirpurkhas at Rs2,575 to Rs2,600.

MNH-93 PUNJAB: 1,200 bales, Bahawalnagar at Rs2,690 to Rs2,715; 200 bales, each Mitro, Pakpattan and Sahiwal at Rs2,725; and 200 bales, Burewala at Rs2,715.