October 19, 2006	Thursday	Ramazan 25, 1427

KARACHI, Oct 18: Physical activity on the cotton market on Wednesday was maintained on the higher side for the sixth session in a row as spinners were not inclined to take a technical breather to have an overview of their inventories.

“The current rates of lint irrespective of the quality conform to our export parity levels for textiles and there is no reason to keep to the sidelines,” spinners said.

Moreover, the crop position is still uncertain as no one could precisely say whether or not it is in line with the target of 12.5m bales, they said.

Floor brokers said the fall in phutti prices from the early season’s peak level of Rs1,400 per 40kg seemed to upset the price balance in favour of the textile industry and its current buying-spree reflected that they were in a better position as compared to the earlier season.

Phutti prices have declined to around Rs1,125 per 40kg and hasty selling by some of the growers could push them further lower if they did not held on to their freshly picked phutti to forestall further decline, they added.

Market sources said arrival figures of phutti into the ginneries for the fortnight ending Oct 15 are expected to be released by the Pakistan Cotton Ginners Association (PCGA) during the next couple of sessions and would give a fair idea of the crop and the future price outlook based on supply and demand factors.

It was in this background that official spot rates were held unchanged at the overnight level of Rs2,375, although some of the deals were done well below them owing to quality factors.

New York cotton futures on the other hand showed fractional changes. While the ruling December contract managed to show a fractional rise of 0.02 cents at 49.20, the forward March was held unchanged at 52.45 cents per lb.

Ready offtake was on the higher sides as till late in the evening about 15,000 bales changed hands as under:

SINDH TYPE: 3,000 bales, Mirpurkhas at Rs2,275 to Rs2,300; 600 bales, Dadu at Rs2,370; and 200 bales, Gambat at Rs2,325.

PUNJAB VARIETY: 2,500 bales, Rajanpur at Rs2,420 to Rs2,425; 1,600 bales, Jalalpur at Rs2,400 to Rs2,425; 400 bales each, Sadiqabad, Liaquatpur, Ahmedpur East, 1,000 bales, Khanewal, at Rs2,425; 1,000 bales, Chistian and 400 bales, Mamon Kanjan, Chichawatni at Rs2,375; 200 bales, Mongi Bungalow at Rs2,400; 800 bales, Bahawalpur at Rs2,415 to Rs2,425; 1,000 bales, Burewala at Rs2,420; 400 bales each, Alipur and Lodhan at Rs2,400.