March 04, 2007	Sunday	Safar 14, 1428

KARACHI, March 3: Physical activity on the cotton market on Saturday shrank to low ebb as ginners further raised their asking prices for fine lots amid market talk of lower final crop figures.

Unlike the overnight active ready mill off-take, there was a relative lull as ginners held on to their unsold positions anticipating further increase in prices based on supply and demand factors, brokers said.The latest arrival figures of phutti into the ginneries for the month of February up to March 1, showed a fall of 10.54 per cent at 12.24m bales, which in turn fuelled fresh rise in prices, brokers said.

Out of the total, mills have purchased 10,927 bales and private sector exporters 0.107m bales, leaving an unsold stock of 1.206m bales as compared to previous fortnight’s 1.741m bales with the ginners.

A leading cotton analyst said the final crop figure is expected to touch the high mark of 12.3m bales as most of the ginning factories in the entire cotton belt have been closed down.

“A sharp fall in the unsold stocks to 1.206m bales from the previous 1.741m bales reflects an impending pressure on supplies toward the close

of the current season and may push prices further higher,” he said.

That is perhaps spinners and mills kept to the sidelines apparently assessing future price outlook in the backdrop of local crop and expected shortfall to bridge the supply gap, he added.

Official spot rates were held unchanged at the last level of Rs2,525 per maund but some of the deals in the ready section were finalised above them.

But on the other hand, New York cotton futures posted fresh rise of 0.05 and 0.19 cents per lb at 55.85 and 53.89 cents per lb for the maturing March and the ruling May contracts, respectively.

Ready off-take was light totaling about 4,000 bales, the following being some of the notable deals: 2,000 bales, Liaquatpur at Rs2,625, and 1,400 bales, Rahimyar Khan at Rs2,575.