January 20, 2007	Saturday	Zilhaj 29, 1427

KARACHI, Jan 19: Cotton market on Friday tended further higher as ginners raised their asking prices but spinners were not inclined to make bigger commitments keeping in view their export parity levels.

Unlike the overnight active trading, the activity was relatively slow partly because of the absence of leading spinners and mills and partly to a short Friday session in the Punjab markets.

Some big deals were, however, reported in the southern Punjab cotton belt as fine lots were traded as higher as Rs2,625 per maund.

Floor brokers said most of the spinners kept to the sidelines as the rising prices are said to be well above their export parity levels, while leading among them, who are fully booked for the quarter ending March 31, are active buyers even at the rising prices.

Market sources said the balance of price seems to have shifted into the hands of ginners as leading among them are holding bulk of the lint and phutti lying into their ginneries.

“With grower out of the picture now the fight is straight between the ginner and spinner,” they said adding “indications are that the latter may be at the receiving end because of a short crop.”

Spinners and mills have to go a long way to cover their annual consumption needs, which is expected to touch the high mark of 14m bales plus.

Out of the total crop of slightly below 12m bales, spinners have so far purchased about 9.5m bales, leaving big supply gap expected to be bridged through import, brokers said.

It was in this background that official spot rates were revised upward by Rs25 at Rs2,550 per maund but most of the deals in the ready section were done well above them.

The following are some of the deals gone through late on Friday evening: 5,600 bales, Khanpur at Rs2,625, 3,000 bales, Rahimyar Khan at 2,620 to 2,625,1,000 bales, Ahmedpur East at 2,575, 500 bales, Yazman at 2,565 and 400 bales, Mehrabpur at 2,475.