January 27, 2007	Saturday	Muharram 07, 1428

KARACHI, Jan 26: Trading activity on the cotton market on Friday was relatively slow owing partly to closure in the Punjab cotton belt and partly to stock taking by the spinners.

Stray lots did, however, changed hands from the central Sindh ginneries but there was a relative quiet elsewhere, notably in the southern Punjab.

Floor brokers also attributed the slow down to delivery problems owing to two holidays on Monday and Tuesday on account of Ashura and the absence of buyers.

But some others said some lots did change hands around the current level for delivery after mid-week next week, although deals were confined to inferior varieties.

The normal activity is expected to be resumed after the Ashura holidays but they said pent-up demand from some of the needy spinners could push prices further higher.

Ancillary industry sources said supplies of yarn on the local market is competitive but some problems on the export front have negative impact on the foreign sales at higher rates.

Meanwhile, reports reaching here from the cotton belts indicate that most of the ginners are holding on their fine lots to sell them at higher rates, while they are trying to sell inferior ones, which are also being sold at an average rate of Rs2,500 per maund.

There was no change in the official spot rates, which were firmly held at Rs2,550 per maund but ready offtake was light.

New York cotton futures on the other hand showed fractional fall of 0.10 cents per lb for both the ruling March and forward May contracts at 54.37 and 55.40, respectively.

Ready business was slack and totaled to about 4,000 bales, the following being some of the notable deals, all from Sindh ginneries: 3,100 bales, Tando Adam at Rs2,525 and 200 bales, Sanghar at Rs2,540.00 per maund.