January 11, 2007	Thursday	Zilhaj 20, 1427

KARACHI, Jan 10: Physical trading on the cotton market on Wednesday gathered fresh momentum as spinners and mills made active covering purchases fearing further increase in prices.

About 20,000 bales changed hands including combined a big deal of 9,000 bales from three southern

Punjab ginneries despite the fact spinners tried to maintain a status after having gone go slow.

But ginners were not inclined to be in an obliging mood as they think now is their turn to give direction to the market based on lower crop ideas, brokers said.

Most of the deals were finalised well above the official rate between Rs2,575 to 2,585 but unlike the overnight session no deal was reported at Rs2,600 per maund.

“I think the market is heading for price flare-up,” a leading broker Naseem Usman said “the supply and demand factors will continue to guide the future price outlook in the coming weeks.”

It was in this background that spinners and mills are requesting the government to allow import from India, which is said to have a sizable exportable surplus.

Import of lint from India, they claim is most economical as compared to other countries alone on freight account via an overland route.

Market sources said some of the leading mills from the Punjab cotton belt had already an understanding with the Indian exporters for supplies and spinners are awaiting official approval.

The next few weeks are expected to be crucial for the direction of the market as supply and demand factors will continue to guide it, they added.

Official spot rates were again firmly held at the previous level of Rs2,500 for an average lint but fine lots were sold well above them.

New York cotton futures on the other hand suffered modest decline of 0.43 and 0.41 cents at 54.10 and 59 cents per lb, respectively.

Ready off-take was on the higher side, reflecting that the market is progressively heating up and as a result about 20,000 bales changed hands, the following being some of the notable deals:

SINDH TYPE: 1,000 bales, upper Sindh at Rs2,575

PUNJAB VARIETY: 9,000 bales, Liaquatpur, Jalalpur and Rahimyar Khan at Rs2,580, 2,000 bales, Khanpur at 2,585, 1,000 bales each Rahimyar Khan and Sadiqabad at 2,575 and 600 bales, Vehari at 2,485