September 15, 2006	Friday	Sha'aban 21, 1427

KARACHI, Sept 14: Cotton prices on Thursday further eased by Rs25 per maund in physical trading as ginners appeared to be in a bit hurry to clear their backlog of unsold stocks.

Much of the pressure remained confined to the Punjab variety followed by reports of steady arrivals of phutti into the ginneries as picking operations there gather a fresh momentum.

“Both the grower and the ginner are in a bit hurry as no one is inclined to hold on to long positions beyond a couple of days in an uncertain market facing the threat of a damage to crop,” market sources said.

Growers who have been entertaining higher price ideas followed by reports of pest attack in the central Punjab cotton belt could not precisely decide whether or not to hold on to their unsold stocks, they said.

As the cotton situation is still unclear, small growers sold their stocks below Rs1,400 per 40 kg and ginners followed them and lowered lint prices by the same amount, they added.

That is perhaps why most of the deals in the Punjab variety were done well below the last couple of sessions higher rate of Rs2,700 per maund plus.

Active expansion in the ready off-take reflects that the prevailing prices are in line with spinners’ parity levels and leading among them are out to grab the floating stocks, says a leading broker.

Official spot rates were, therefore, quoted at the overnight levels but some of the deals were done well above them both in Sindh and the Punjab varieties.

New York cotton futures on the other hand remained under pressure and suffered fall of 0.48 and 0.44 cents per lb at 50.55 and 52.80 cent for both the ruling October and the distant December contracts respectively.

Ready off-take was on the higher side totalling 15,000 bales, the following being some of the notable deals.

SINDH VARIETY: 1,000 bales, Sultanabad and 600 bales, Mirpurkhas at Rs2,525 to Rs2,540, 400 and 600 bales, Nawabshah and Shahdadpur at Rs2,600 and 200 bales, Shahpur Chakkar at Rs2,575.

MNH-93 PUNJAB: 2,600 bales, Bahawalnagar at Rs2,650, 800 and 200 bales, Mian Chnnu and Garmaraja at Rs2,670, 200 bales, 400 bales, 200 bales, and 200 bales, Burewala, Chichawatni, Kabirwala and Pakpattan at Rs2,650, 200 bales each Khanewal, Jehania, Pril Mahal, Vehari at Rs2,675, 200 bales, Hasilpur at Rs2,665, 200 bales, Chistian at Rs2,660 and 200 bales, Sahiwal a Rs2,700.