March 21, 2007	Wednesday	Rabi-ul-Awwal 1, 1428

KARACHI, March 20: Cotton market on Tuesday maintained a firm trend as spinners and mills made active covering purchases at the current levels fearing an increase in prices owing to an expected pressure on future ready supplies.

However, unlike the overnight session, most of the deals were done well below the peak level of Rs2,700 per maund as fine lots were traded between Rs2,600 and Rs2,650 per maund, while inferior ones were sold at Rs2,300 and Rs2,500 on the lower and higher side, respectively.

An idea of snap pick up in mill demand may well be had from the fact that about 15,000 bales both from the central Sindh and southern Punjab ginneries changed hands.

Floor brokers said spinners seem to be in no mood to take fresh risks about the future price outlook and fear ginners could raise prices further after the Pakistan Cotton Ginners Association (PCGA), released arrival figures for the April 1.

The market talk of lower unsold stocks with the ginners could fuel price flare-up time, they said adding as spinners are not inclined to take further risks in regard to the supplies, and leading among them resumed normal moping operations.

Unlike the previous sessions, spinners now are not inclined to play hide and seek game in view of a short crop and fears of an imminent price flare-up, they added.

Official spot rates were firmly held at the last level of Rs2,600 but most of the fine lots were traded well above them.

New York cotton futures on the other hand ruled dull in the absence of foreign demand and were quoted fractionally lower for the ruling May contract at 53.71 cents per lb, while the forward July was held unchanged at 54.64 cents per lb.

Mills ready off-take was on the higher side the following being some of the notable deals:

SINDH TYPE: 1,600 bales, upper Sindh at Rs2,625 to Rs2,650, 200 bales, Sanghar at Rs2,300, 500 bales, Matyari at Rs2,350 and 2,000 bales, Shahdadpur at Rs2,500.

PUNJAB VARIETY: 2,500 bales, Haroonabad at Rs2,550 to Rs2,600, 1,364 bales, Duniyapur at Rs2,625, 1,000 bales, Multan at Rs2,650, 1,000 bales, Shujabad at Rs2,625, 700 bales, Bahawalpur at Rs2,650, 400 bales, Jehania at Rs2,600 and 800 bales, Khanewal at Rs2,625.