October 01, 2006	Sunday	Ramazan 7, 1427

KARACHI, Sept 30: Cotton prices on Saturday suffered fresh fall of Rs25 per maund as ginners continued to make hasty selling amid conflicting reports about the size of the crop.

On an average the Sindh variety was traded at around Rs2,450 per maund in line with the officially revised rates, while the Punjab variety was sold at Rs2,525 per maund, the premium is owing to quality differential and staple length.

But ginners said their selling was based on their crop ideas and falling phutti (seed-cotton) prices in the backdrop of panic amid small growers.

“In an uncertain market in the background of changing crop scenario, it is pretty risky to hold on to unsold stocks for a better price,” says a ginner. “Each one of us is out to clear the backlog on the phutti based rates, despite the fact that a number of growers are dumping their phutti in ginneries on an unfixed basis.”

“The cotton trade appears to be heading for a major crisis as no one is sure about the size of the crop and most of the players are playing according to their perceptions,” dealers said.

They said speculative forces appeared to have overtaken the cotton trade and were keeping both the growers and ginners at their toes all the time, never allowing them to have an overview of the developing situation.

“The spinners and mills are said to be the chief beneficiary of the current scenario,” another ginner said, adding: “Whether or not they could boost export after having purchased lint at the lower rates is anybody’s guess.”

Official spot rates were further lowered by Rs25 per maund at Rs2,450 in line with the average rate at which physical business is being conducted.

New York cotton futures fell below the benchmark rate of 50 cents per lb at 49.30, off 0.70 cent for the ruling October contract, while forward December was quoted lower by 0.96 cents at 50.45 cents per lb.

Ready offtake was active as till late in the evening about 10,000 bales changed hands as under:

SINDH VARIETY: 600 bales, Shahdadpur at Rs2,450 to Rs2,465; 200 bales, Tando Adam at Rs2,465; 400 bales, Nawabshah, 200 bales each Qazi Ahmad, Bandhai and Kot Ghulam Muhammad at Rs2,450.

PUJAB TYPE: 1,000 bales, Khanewal and 1,200 bales, Hasilpur at Rs2,525 to Rs2,550; 400 bales, Mamon Kanjan at Rs2,500 to Rs2,515; 200 bales each, Depalpur, Qutubpur, Pir Mahal, Kabirwala and Vehari at Rs2,525; 600 bales, Chichawatni at Rs2,500 to Rs2,525; 200 bales, Faqirwali at Rs2,550; and 200 bales, DG Khan at Rs2,530.