March 02, 2007	Friday	Safar 12, 1428

KARACHI, March 1: Trading activity on the cotton market on Thursday remained cheerless as price ideas of sellers and buyers were poles apart as was reflected by falling ready mill off-take.

Although prices on the ready market were ruling between Rs2,300 and Rs2,625 per maund both for low-mic and fine lots, ginners appeared to be in a commanding position owing partly to holding onto their unsold stocks and partly to a short crop, floor brokers said.

“Everyone is awaiting the final crop figure to be released by the Pakistan Cotton Ginners Association (PCGA) during the next couple of sessions on which the contenders will base their future line of action,” a leading cotton analyst Naseem Usman said.

But he doesn’t think the current rigid position taken by the ginners on the price issue will ease as supply and demand factors are guiding the market trend.

Market sources said spinners and mills had their own problems in the backdrop of falling prices of textiles on the foreign markets and parity levels which had significantly limited their buying capacity.

“The situation is further aggravated by higher New York cotton futures and their bullish impact on the other markets, which in turn has added to the production cost of the consumers elsewhere,” they added.

Official spot rates were quoted lower by Rs25 per maund at Rs2,525 per maund as some of the low-mic lots were traded lower.

Ready offtake was on the lower side as spinners and mills were not inclined to go beyond their parity levels. As a result, only 600 bales, of Shahdadpur changed hands at Rs2,460.