October 05, 2006	Thursday	Ramazan 11, 1427

KARACHI, Oct 4: The cotton market on Wednesday showed firm trend as ginners raised their selling prices owing to hectic mill buying and perceptions of pressure on ready supplies.

In physical trading, most of the deals were finalised at the higher rates as spinners and mills were not inclined to take financial risks in a highly volatile market and continued to make fresh covering purchases, dealers said.

The notable feature was that some of the leading spinner groups having almost secured export outlets also indulged in big-lot business, which in turn pushed prices higher, they added.

Sindh type was traded between Rs2,450 to Rs2,475 per maund, while bulk of the Punjab lint was sold at an average rate of Rs2,525 per maund depending on the quality.

Floor brokers said spinners and mills, barring some big ones who have willing trading partners, were facing some problems on the export front because of competition from other producers of textile, which in turn had a negative impact on their local working.

Owing to higher use of synthetics, cotton yarn prices on the local markets are also said to be a bit cheaper as compared to higher input costs, they said.

Meanwhile, spinners are awaiting the official arrival figures of phutti into the ginneries for the month of September, which would give an idea of the crop size on which the future price outlook would be based.

Official spot rates were revised upward by Rs25 at Rs2,475, but in the ready section most of the deals were quality based.

New York cotton futures ruled mixed. While the maturing October settlement was held unchanged at 48.40 cents, the ruling December was further marked down by 0.35 cent at 49.37 cents per lb.

Ready offtake was active as spinners and mills continued to make fresh covering purchases at the current levels. Another 15,000 bales changed hands as under, the following being some of the notable deals:

SIND VARIETY: 1,200 bales, Shahdadpur at Rs2,465 to Rs2,475; 1,000 bales, Tando Adam at Rs2,460 to Rs2,475; and 400 bales, Mirpurkhas at Rs2,450.

PUNJAB TYPE: 200 bales, Mamon Kanjan, 400 bales each, Fazilpur, Rahim Shah, Mongi Bangalow, Hasilpur, Chchawatni, Haroonabad, and 200 bales each, Mailsi and Gojra at Rs2,525; 600 bales, Khanewal, 200 bales, Shujaabad, Kassowal and Dunyiapur at Rs2,550; 600 bales, Vehari at Rs2,500 to Rs2,525.

Some other deals were as under: 1,600 bales, Burewala at Rs2,525 to Rs2,550; 1,000 bales, Jahania at Rs2,500 to Rs2,525; 1,000 bales, Bahawalnagar at Rs2,490; 200 bales, Bakhar at Rs2,500; 200 bales, DG Khan at Rs2,505; 200 bales, Mian Channu and Rajanpur at Rs2,535.