October 04, 2006	Wednesday	Ramazan 10, 1427

KARACHI, Oct 3: Trading on the cotton market on Tuesday was fairly active as spinners and mills are not inclined to take an overview of their inventories and indulged in fresh buying.

About 15,000 bales, both from the Sindh and Punjab ginneries changed hands at modestly higher rates as compared to the official average quality rates.

“Lint prices should have declined further in sympathy with the New York cotton futures but steady mill demand is keeping them on the higher side,” says a leading floor broker.

But as spinners are out to grab the floating stock of lint below Rs2,550 per maund and lower depending on the quality as it fall in line with their export parity level, he said.

“The fall of the New York cotton futures below the benchmark of 50 cents seems to have sent shock waves among the local ginners who are not inclined to hold long positions and make ready sales,” market sources said.

New York cotton futures on Monday were quoted lower at 48.40 and 49.72 cents per lb for both the ruling October and the distant December settlements, respectively, off 0.90 and 0.73 cents.

Fears that the spinners may opt for cheaper lint from foreign markets worried ginners most of whom try to keep slate clear of any backlog, they added.

However, the ginners are watching the developing situation on the cotton trade amid fears of fresh fall in prices if the New York cotton futures maintained their downward trend.

Local lint rates currently are compatible with the foreign one and that is perhaps why the spinners are lifting all the lots offered around the prevailing prices, ginners said.

Official spot rates were again held unchanged at Rs2,450 per maund, modestly lower at which ready business is being transacted.

The following are some of the notable deals, which gone through late on Tuesday evening:

SINDH VARIETY: 1,400 bales, Jhole at Rs2,475 to Rs2,500; 2,000 bales, Tando Adam at Rs2,475 to Rs2,485; 400 bales, Mirpurkhas, at Rs2,450; 200 and 400 bales, Khipro and Shahdadpur at Rs2,475.

PUNJAB TYPE: 1,000 bales, Khanewal, 400 bales, each Basti Mluk, Mederssah, and Multan at Rs2,550; 800 bales, Bahawalpur at Rs2,525 to Rs2,550; 200 bales, Mamon Kanjan at Rs2,525; 400 bales, Chichawatni at Rs2,525 to Rs2,550; 1,000 bales, Rajanpur at Rs2,250 to Rs2,535; 1,000 bales, Bahawalnagar at Rs2,500; 1,000 bales, Burewala at Rs2,500 to Rs2,525; 1,000 bales, Hasilpur at Rs2,525 to Rs2,550; 200 bales, Pak Pattan at Rs2,510; 400 bales, Chistian and 200 bales, Pir Mahal at Rs2,525; and 600 bales, Vehari at Rs2,500 to Rs2,510.