November 05, 2006	Sunday	Shawwal 12, 1427

KARACHI, Nov 4: Trading on the cotton market on Saturday was maintained on the higher side as there was no-let up in mill buying, fine lots being the main target. In physical trading, most of the big-lots were sold about Rs25 to Rs40 per maund higher as compared to overnight rates as some of the ginners raised their asking prices followed by panic mill buying.

The notable feature was that all the deals finalised were above 1,000 bales, the highest being 3,000 bales, reflecting the mill scramble for the ready stocks, ginners said, adding “the fact that there was no retail deal shows the intensity of the mill buying”.

Leading textile groups were said to be main buyers who are out to grab the floating stock around the current levels, while their weaker links are a bit worried over the developing situation, brokers said.

“There is virtual mill squeeze on the floating stocks as both spinners and mills are in no mood to take even a technical breather at this stage owing to conflicting reports about the size of the crop,” they said.

During the post-eid trading week mill ready off-take touched the high mark of 0.150m bales, which, dealers said could lead to a price flare-up during the next week if panic mill buying continues.

But some others said price ideas of both buyers and sellers seemed to have found a meeting ground which in turn was well-reflected in hectic daily covering purchases by mills.

Owing to steady mill demand, the official spot rates were again firmly held at the previous levels, although most of the deals in the ready section were done well above them.

New York cotton futures on the other hand posted fresh fractional rise of 0.03 and 0.8 cents at 49.21 and 53.35 cents per lb for both the ruling December and the forward March contracts respectively.

Ready off-take was on the higher side totalling about 30,000 bales as under.

SINDH TYPE: 2,000 bales each Mirpurkhas and Tando Adam at Rs2,350 to Rs2,400, 1,000 bales, Shahdadpur at Rs2,350 to Rs2,370, 1,000 bales, Sanghar at Rs2,300 to Rs2,325, 1,000 bales each Khairpur and Nawabshah at Rs2,350.

PUNJAB VARIETY: 3,000 bales, Khanewal at Rs2,440 to Rs2,450, 2,000 bales, Bahawalpur at Rs2,425 to Rs2,450, 3,000 bales and 1,000 bales, Rajanpur and Rahimyar Khan at Rs2,435 to Rs2,440, 2,000 bales, D.G.Khan at Rs2,435 to Rs2,450, 1,000 bales each Jalalpur at Rs2,425, 1,000 bales Bagho Bahar at Rs2,445, 1,000 bales, Multan at Rs2,435 and 1,000 bales, Jahania at Rs2,435 to Rs2,450.