October 03, 2006	Tuesday	Ramazan 9, 1427

KARACHI, Oct 2: The cotton market on Monday showed firm trend as physical business remained on the higher side and spinners and mills were active buyers around the ruling prices.

Some of the leading spinner groups also indulged in big-lot business at the current levels, which are said to be in line with their forward sales of cotton yarn and cloth for the quarter ending Oct 30, dealers said.

Lint prices seem to have stabilised at around Rs2,450 and Rs2,550 per maund for both the Sindh and Punjab lint, respectively. Strong mill buying also reflects fair profit margins for all those associated with the cotton trade at these rates, floor brokers said.

But the panic caused by above normal arrival of phutti into the ginneries and selling by some of the growers seem to have benefited the spinners as they are not buying lint at a competitive rate, they said.

But some others said the current slowdown in export demand and fall in world prices may curtail mill demand in the coming weeks, which may have negative impact on the ruling lint prices.

Much, however, will depend on the size of the crop from the Punjab cotton belt and its size. If it is below the target, prices may rise again and if it around the target prices may remain stable in futures, they added.

However, the spinners and mills are watching carefully the future supplies and demand factors and leading among them have already started importing lint from various countries to meet any shortfall at the end of the season, they said.

Official spot rates were again held unchanged at the weekend level of Rs2,450 per maund based on an average rate at which deals are being finalised in the ready section.

In the ready section about 10,000 bales changed hands, the following being some of the important deals:

SINDH TYPE: 1,600 bales, Tando Adam and 1,000 bales, Shahdadpur at Rs2,450 to Rs2,465; and 200 bales, Mirpurkhas at Rs2,450.

PUNJAB VARIETY: 1,200 bales, Khanewal, 600 bales, Kabirwala, 200 bales, Jhang, 400 bales, Mian Channu, 200 bales, Bhawana, and 200 bales, Pir Mahal at Rs2,550; 600 bales, Mamon Kanjan at Rs2,525 to Rs2,550; 600 bales, Vehari at Rs2,500 to Rs2,515; 400 bales, Rajanpur, 200 bales each Gojra and Machwala, 400 bales, Hasipur, 400 bales, Arifwala at Rs2,525; 200 bales, each Jahania and Kacha Khuo at Rs2,540; 200 bales, Pakpattan 400 bales, DG Khan at Rs2,500; and 400 bales, Mailsi at Rs2,515.