April 06, 2007	Friday	Rabi-ul-Awwal 17, 1428

KARACHI, April 5: Cotton market on Thursday consolidated its overnight price flare-up of well over Rs150 per maund as spinners and mills remained active buyers at the ginners’ asking prices.

The snap price flare-up was attributed to lower than market perception unsold stocks of 0.673m bales lying with the ginners up to April 1, 2007, floor brokers said.

The supply worries among the spinners and mills were well reflected in their panic buying irrespective of the rates quoted by the ginners, they added.

Another 10,000 bales of mostly fine lots changed hands between Rs2,700 and Rs2,800 per maund and it was being speculated that prices may rise further in the coming weeks owing to a short crop, some other said.

“What seem to have caused panic among the weaker links of the textile cartels were fears that their senior partners may try to corner the floating stock of lint, which will eventually lead to another price flare-up,” they added.

According to phutti arrival figures released by the Pakistan Cotton Ginners Association (PCGA) on Wednesday, the total arrivals mounted to 12.384m bales, out of which spinners had purchased 11.595m bales and private sector exporters lifted 0.117m bales, leaving an unsold stock of 0.673m bales with the ginners of mostly southern Punjab and upper Sindh.

Official spot rates were quoted higher by Rs50 at Rs2.650 in line with the average prices in the ready section.

New York cotton futures also showed modest increase of 0.21 and 0.30 cents at 53.26 and 54.74 cents per lb for both the ruling May and the distant July contracts respectively.

Mill ready off-take was active totalling about 10,000 bales, the following being some of the notable deals:

SINDH TYPE: 200 bales, each Nawabshah and Hyderabad and 400 bales, Mahrabpur at Rs2,700, 400 bales from Rohri at Rs2,600.

PUNJAB VARIETY: 400 bales, Rahimyar Khan at Rs2,800, 2,600 bales, Rahimyar Khan and 1,200 bales, Shujabad at Rs2,750, 400 bales, Kehror Pacca and 200 bales, Lodhran at Rs2,700.