February 28, 2007	Wednesday	Safar 10, 1428

KARACHI, Feb 27: After last couple of sessions’ relative lull on the cotton market stray activity was witnessed as some of the spinners and mills resumed their covering operations against forward sale of textiles.

Ready mill off-take was light but indicated that fears of price flare-up in the coming sessions based on short supply could push prices further higher from the current levels, brokers said.

As the spinners and the mills have still to go a long way to cover their forward positions most of them are worried over the future supplies at competitive rates, they said.

Although leading among them are active on the foreign markets and some of the shipments against their forward deals are already in the pipeline, some of them still prefer to have local lint at competitive rates, spinners said.

But at the same time they are trying to keep selling prices below Rs2,650 per maund after remaining absent from the market. However, ginners are not worried over these tactical moves and are steadily holding on to their unsold stocks, they added.

However, imports of lint from India via overland route could work against the interest of spinners and there are fears that their weaker link may indulge in panic selling fearing decline in prices, they said.

Bulk of the interest again remained confined to fine lots but not all the spinners were inclined to buy at the inflated levels because of their export parity level, floor brokers said.

But leading among them, who have secured export outlets, did purchase some of the big-lots at Rs2,600 and 2,625 per maund, they said.

It was perhaps in this background that official spot rates were quoted higher by Rs25 per maund at Rs2,550.

Mill ready off-take showed some improvement as about 7,000 bales changed hands, the following being some of the notable deals: 3,000 bales, Khanpur at Rs2,600 to Rs2,625, 1,000 bales, Jalalpur at Rs2,575 to Rs2,600, 1,100 bales, Sadiqabad at Rs2,545, 500 bales, Bahawalpur at Rs2,550, 400 bales, Daharki at Rs2,620 and 200 bales, Kot Diji at Rs2,460.