December 08, 2006	Friday	Ziqa'ad 16, 1427

KARACHI, Dec 7: Cotton market on Thursday ruled firm as spinners and mills continued to build up long positions at the current levels amid fairly brisk activity.

Much of the activity including some big-lot business again remained confined to the Punjab variety around Rs2,600 per maund for fine lots and below it for the inferior ones.

Floor brokers said spinners and mills still to go a long way to cover their annual consumption needs of about 14m bales, the current pick up in their daily intake reflected that leading among them had an eye on the target.

“Spinners and mills are fighting on the two fronts,” they said, adding “on the one hand they are eyeing their annual consumption target at competitive rates and contain prices within the current levels on the other”.

There are fears among the spinners that rain may have damaged the quality of lint and that could lead to decline in prices possibly by the next week.

According to official figures their tally is around 6.5m bales plus modest imports as against their target of 14m bales.

Market sources said the recent rain spell through the cotton belt has slowed down ginning operations and arrivals of phutti into the ginneries but prices remained stable around the pre-rain levels.

The arrival of third and final picking of phutti are expected to be resumed by the next couple of sessions as growers are busy in mopping operations to clear their godowns in totality well in time for sowing wheat in the fields vacated by cotton, they added.

Official spot rates were again quoted unchanged at the overnight level of Rs2,525 for average quality lint.

New York cotton futures on the other hand lacked normal support and price changes were fractional. While the maturing December contracts was held unchanged at 49.00 cents, the ruling March showed a marginal fall of 0.5 cents at 53.34 cents per lb.

Ready business was maintained on the higher as about 25,000 bales changed hands as under:

SINDH TYPE: 400 bales, each Mirpurkhas and Khipro at Rs2,440, 400 bales, New Saeedabad at Rs2,400 and 400 bales, Shahdadpur at Rs2,450 and 1,000 bales, Sanghar at Rs2,415-2,510.

PUNJAB VARIETY: 3,000 bales, 2,000 bales, each Bahawalpur, Rahimyar Khan, Sadiqabad, 1,000 bales each Ahmedpur East, Khanpur, Rajanpur and Yazman at Rs2,600, 4,000 bales, D.G. Khan at Rs2,575, 400 bales, Kabirwala at Rs2,560, 800 bales, Chistian at Rs2,550 and 400 bales Haroonabad at Rs2,590.