October 29, 2006	Sunday	Shawwal 5, 1427

KARACHI, Oct 28: Cotton market on Saturday passed through another cheerless trading session as physical activity failed to pick up in the absence of strong support.

Some leading brokers, however, claimed a couple of lots changed hands both in the Sindh and Punjab varieties but below the official spot rates for delivery early next week.

They said spinners appear to be in no mood to bid above Rs2,400 per maund depending on the quality of lint, although some premium lots said to have changed hands around Rs2,450, mostly from the southern Punjab cotton belt.

But the heating up of the New York cotton futures market during the last couple of sessions on reports of speculative support and entry of some foreign buyers in the US market did not have an immediate sympathetic positive impact on the local prices, it could encourage big ginners to hold on to their unsold stocks to keep pressure on ready supplies.

Indications are that the progressive increase in world prices could make local lint expensive in the coming week supported by the talk of a lower crop because of damage to crop in Sindh, dealers said.

That is perhaps why despite holding on to large unsold stocks of 0.761 million bales, ginners are not inclined to lower their asking prices, hoping to sell them at higher rates, they added.

However, up to May this year, spinners and mills have not imported lint from any world supply sources, they said adding up to May 2,006, the import figure stood at 0.101 million bales.

New York cotton futures on Friday were quoted further modestly higher by 0.19 and 0.34 cents at 50.79 and 53.98 cents per lb for both the ruling December and the distant March contracts, respectively.

Reports reaching here said the Trading Corporation of Pakistan (TCP), is planning to procure contamination-free lots from the model ginning factories both in the Sindh and the Punjab cotton belts.

Official spot rates were again held unchanged at the overnight level of Rs2,375, although some of the deals were done well above them.

Ready off-take was light totalling 2,500 bales, both in Sindh and Punjab varieties done at rates in line with the quality.