December 05, 2006	Tuesday	Ziqa'ad 13, 1427

KARACHI, Dec 4: Trading on the cotton market on Monday resumed on a bullish note as spinners and mills were not inclined to take a technical breather despite higher crop ideas in the backdrop of latest arrival figures of phutti into the ginneries.

Fine lots from the Punjab cotton belt were again traded at a uniform rate of Rs2,600 per maund but Sindh variety attracted quality-based support, the highest rate being Rs2,500.

An idea of mill scramble for the floating stock may well be had from the fact that higher arrivals of phutti into the ginneries failed check their buying enthusiasm around the current levels, floor brokers said.

Arrival figures, released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended Dec 1, showed an increase of 2.25 per cent over the last year, which was lower by 8.07 per cent.

Out of the total of 8.979 million bales, mills have so far purchased 6.499 million bales and private sector exporters 67,350 bales, leaving an unsold stock of 2.413m bales with the ginners.

Although the unsold stock showed an increase of 0.4m bales over the previous 2m bales plus, it has no immediate negative impact on lint prices as spinners continued to make panic buying, floor brokers said.

A section of spinners believe that arrival figures could fall from the current higher levels as third picking is almost over and growers are preparing cotton fields for wheat sowing.

They fear that the peak of arrivals of phutti is already over and the next fortnight will show fall in arrivals which in turn will fuel fresh price flare-up.

“The confusion over the supply and demand figures continued to keep prices on the higher side as both the sellers and buyers are not clear how to react to the developing situation on the cotton front,” they added.

Market sources said active mill buying reflected some positive changes on export front for the first quarter of the next year and spinners are out to cover their forward sale positions.

Official spot rates were, however, again quoted at the previous level of Rs2,525, but business was being transacted well above them.

Ready off-take totalled about 15,000 bales as under.

SINDH TYPE: 1,000 bales, Sanghar at Rs2,350-2,450, 1,000 bales, Shahdadpur at Rs2,425-2,475, 1,000 bales, Sarhari at Rs2,460-2,475 and 200 bales, Dadu at Rs2,500.

PUNJAB VARIETY: 3,000 bales, Rahimyar Khan, 2,000 bales, Bahawalpur and 1,000 bales, Uch Sharif at Rs2,600, 2,000 bales, Lodhran at Rs2,575-2,600 and 200 bales, Sadiqabad at Rs2,600.