December 28, 2006	Thursday	Zilhaj 06, 1427

KARACHI, Dec 27: Physical activity on the cotton market on Wednesday remained subdued as leading spinners and mills kept to the sidelines owing to delivery problems.

Floor brokers said some of the leading ginners offered to lower their selling prices for deliveries before eid holidays but higher freight rates and the absence of normal transport facility did not allow them to re-enter the arena.

As a result, for the third session in a row, no deal both from the Sindh and the Punjab cotton belts was reported by any of the local brokers to the Karachi Cotton Association (KCA) for official listing, they said.

But some brokers said stray lots did change hands where delivery problems were not that acute and transport facility was available at normal rates. The details of the deals and physical delivery were not immediately available.

Meanwhile, consignments of the imported lint against forward deals made by some of the spinners and mills continued to reach here. The latest figure has touched the high mark of 0.137m bales, according to official sources.

Owing to early reports of a damage to standing crop amid heavy rain and pest attack in some of the Punjab cotton belt, spinners opted for imports to meet any possible shortage of lint.

But now imports of lint was more expensive as New York cotton futures were settled around 57.00 cents per lb and the local lint was still cheaper as compared to foreign one, dealers said.

According to details available from some leading ginners, the unsold stocks lying in their godowns are progressively falling and the balance with them is said to be around 1.6m bales.

Official spot rates were again quoted around the previous level of Rs2,500 per maund.

But New York cotton futures on the other hand were marked up by 0.83 and 0.81 cents at 56.61 and 57.00 cents per lb for both the ruling March and the distant May settlements respectively.