February 27, 2007	Tuesday	Safar 9, 1428

KARACHI, Feb 26: Trading on the cotton market on Monday resumed on a dull note as spinners and mills remained conspicuous by their absence apparently awaiting the final phutti arrival figures and the total crop size.

Floor brokers said mills were awaiting the final crop figures on which they would base their import requirements for the current year ending Aug 31, 2007.

“There are no two opinions about a short crop,” says a leading spinner, adding “until we know the exact crop size we are not inclined to enter in import deals”.

Although, mill consumption has reportedly fallen during the last one month owing to decline in export and higher unsold stocks of finished textiles. “We have to keep the wheels moving though at a bit slow pace,” he said.

According to mill sources, the textile industry may need about 15m bales during the current year to meet their consumption needs and they may require another 2m to 3m bales to bridged the supply gap and crop shortfall.

But local market sources said intake of ancillary industry was picking up progressively owing to higher export orders, which in turn would provide much-needed relief to the spinners as far as large inventories are concerned.

As most of the spinners and mills are awaiting the opening of new quarter beyond March letters of credit by the foreign importers, the victim is ready offtake, they added.

The daily mill offtake, which has fallen to a low ebb despite higher unsold stocks lying with the ginners reflects the general sluggishness both on the local and foreign fronts, some others said.

Official spot rates were, however, firmly held at the last level of Rs2,525, showing that ginners are not inclined to lower their asking prices both for the low-mic and fine lots.

Ready offtake was light totalling about 3,000 bales the following being some of the notable deals: 500 bales, Sanghar at Rs2,460, 900 bales, Shahdadpur at Rs2,490 and 1,000 bales, Jampur at Rs2,500.