March 25, 2007	Sunday	Rabi-ul-Awwal 5, 1428

KARACHI, March 24: Trading activity on the cotton market at the weekend session was light as spinners were not inclined to cover forward positions at the higher prices.

Stray lots did change hands but mostly at the ginners’ asking price of Rs2,700 per maund as some of the mills needed them for blending purposes with the low-mic lint, brokers said.

They said prices could rise further higher from the current levels as unsold stocks with the ginners reported to have fallen to around 0.7m bales, which in turn could put pressure on ready supplies in the weeks to come.

The other aiding factor which could lead to a fresh price flare-up was said to be recent rain in the Sindh cotton belt that has delayed harvesting of wheat for a couple of weeks, they added.

“The delay in wheat harvesting could have a negative impact on cotton sowing, notably in the lower Sindh cotton belt,” leading cotton analysts said, adding “it in turn may lead to another price flare-up because of falling ready supplies”.

But the chief worry of general spinners and mills was the non-availability of official lint import figures. Some say forward deals for about 2m bales have been finalised. Some other claim about a million bales had already arrived in the godowns of mills.

“The release of official import figures by Aptma, KCA or Export Promotion Bureau is the chief factor behind the current price flare-up,” said a spinner.

Meanwhile, reports coming from the yarn market indicate that yarn prices have, in the recent past, showed a modest increase but ready off-take by the ancillary industry was on the lower side and the consequent rise in mill inventories.

It was perhaps in this background that official spot rates did not show any change and were again quoted at the previous level of Rs2,600 per maund.

Mill ready off-take was light amounting to 3,000 bales, the following being some of the notable deals: 800 bales, Sadiqabad at Rs2,700, 500 bales, exporter to exporter also at Rs2,700 and 1,000 bales, Rahimyar Khan at Rs2,675.