December 06, 2006	Wednesday	Ziqa'ad 14, 1427

KARACHI, Dec 5: Physical business on the cotton market on Tuesday was maintained on the higher side as spinners and mills again indulged in big-lot business, notably for fine lots.

Floor brokers said fears of pressure on ready supplies after Monday’s heavy rain in the major cotton growing areas was said to be the chief inspiring factor behind the renewed mill demand.

The other stabilising factor was reports of suspension of ginning operations by some of the ginneries in the entire cotton belt as the phutti lying on the open plinth has gotten wet and fears of damage to quality, they said.

The other aiding factor was drying up of arrivals of phutti into the ginneries for a couple of days because of forecast of fresh rain, they added.

“The perception that the current rain spell may have damaged the quality of phutti to be still processed was said to be the chief motivating factor behind the panic mill buying,” a leading broker said.

He said the next couple of sessions could witness a quality price war among the spinners and mills, leading to price flare-up, he added.

Much of the activity again remained confined to the fine lots from the Punjab, notably quality lots done mostly at Rs2,600 per maund, while inferior varieties were traded around Rs2,500.

Central Sindh type was neglected as only one deal was finalised at much lower rate as compared to its counterpart from the Punjab ginneries.

There was no change in the official spot rates, which were again held unchanged at the last level of Rs2,525 per maund.

Ready offtake was on the higher side as about 20,000 bales changed hands, the notable deals being as under: 3,000 bales, each Rahimyar Khan and Bahawalpur, 2,000 bales each Lodhran and Ahmedpur East, at Rs2,600, 1,600 bales, Haroonabad at 2,585, 400 bales, Mian Channu at 2,500, and 1,400 bales, Uch Sharif at 2,600.

In Sindh type, a deal of 1,000 bales from a Sanghar ginnery was done at Rs2,500.