February 14, 2007	Wednesday	Muharram 25, 1428

KARACHI, Feb 13: Trading on the cotton market on Tuesday was fairly brisk as spinners and mills made fresh covering purchases at the current levels amid rumours of a continued bull-run based on a short crop.

“The market is heating up as spinners and mills are feeling the pinch of short crop,” brokers said, adding “reports of holding back of stocks by some of the leading ginners could fuel the price flare-up”.

A big deal of 7,100 bales at Rs2,650 per maund, being the season’s highest level from southern Punjab ginneries reinforced their perceptions about imminent price flare-up at least for the fine types, they said.

Spinners are not buoyed by the reports of second package to boost the productivity of the textile sector, their immediate worry is about adequate supplies at competitive rates, market sources said.

They fear a price war between the big ones and their weaker links could change the future price outlook as the former has the funds and the capacity to pay more to keep their export channel active but the latter cannot.

They said much will depend on the viability of spinners on the imported supplies at competitive rates. The continued fall in New York cotton futures may come to their rescue after it falls below the 50-cent per lb.

However, they fear the supply and demand factors of the local stuff are expected to set the future market direction before the arrival of the new crop from the Sindh in July or official nod for imports from India.

Official spot rates were again held unchanged at the last level of Rs2,525 per maund but in the ready section most of the deals were quality-based.

New York cotton futures on the other hand were quoted further lower by 0.52 and 0.58 cents per lb at 52.24 and 52.78 for both the ruling March and the forward May contracts respectively.

Ready off-take was active totalling about 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 4,800 bales, Rasulabad at Rs2,410-2,450, 2,000 bales, Upper Sindh at Rs2,575-2,600 and 400 bales, Shahdadpur at Rs2,445.

PUNJAB VARIETY: 7,100 bales, Jalalpur at Rs2,650, 2,000 bales, each Chani Goth and Rahimyar Khan at Rs2,510 and Rs2,550-2,600, 800 bales, Sadiqabad at Rs2,525, 400 bales, Garma More at Rs2,350, 400 bales, Mamu Kanjan at Rs2,415 and 400 bales, Uch Sharif at Rs2,570.