December 12, 2006	Tuesday	Ziqa'ad 20, 1427

KARACH, Dec 11: Trading on the cotton market on Monday resumed on steady note but physical activity remained relatively slow owing to higher asking prices by the ginners.

While most of the spinners and mills kept to the sidelines and were not inclined to trade at the higher rates owing to export parity levels, but leading among them were, however, indulged in big–lot business and lifted all fine lots at the inflated levels, dealers said.

“A cartel of leading mills lifted a big lot of 8,000 bales from Rahim Yar Khan at Rs2,600-2,625 per maund amid fears of an imminent price flare-up,” they said.

Ginners appear to be sitting pretty comfortable on their unsold stocks are least worried over the mills reluctance to bid at their asking prices as they by now have a fair crop idea as the third picking of phutti in the southern Punjab cotton belt is almost complete, they added.

Most of the leading ginners are linking lint prices to phutti, which they are buying around Rs1,400 per 40 kg on the perception that there will be pressure on supplies in the coming weeks.

Floor brokers said spinner fears about the future supplies in the backdrop of a considerable decline in arrivals of phutti are expected to keep ginners in upbeat mood during the coming weeks hoping fresh increase in prices.

“Spinners and mills are worried over the export front as foreign demand for textiles is not picking up partly because of year-end and partly because of forthcoming Christmas and new year holidays,” market sources said.

“Inventories of both cotton yarn and cloth are piling in the hope that the new year opening may be positive,” added the sources.

Official spot rates were again firmly held at the previous level of Rs2,525 per maund but in the ready section some of the deals were done at seasonal highs of Rs2,625.

Ready off-take was light because of higher asking prices and totalled about 15,000 bales as under:

SINDH TYPE: 2,000 bales, Shahdadpur at Rs2,475-2,525.

PUNJAB VARIETY: 8,000 bales, Rahimyar Khan and 2,000 bales, Sadiqabad at Rs2,600-2,625, 1,000 bales, each Bahawalpur and Ahmedpur East at Rs2,600.