April 17, 2007	Tuesday	Rabi-ul-Awwal 28, 1428

KARACHI, April 16: Trading on the cotton market on Monday failed to pick up as the opening session of the new week remained terribly depressed as price ideas of buyers and sellers failed to find a meeting ground.

But some local brokers said stray lots of fine varieties did change hands in the southern Punjab cotton belt around Rs2,800 per maund, details of which are said to be in the process of reaching here possibly by Tuesday.

They attributed an erratic trading pattern in the ready section to higher prices being sought by the ginners who hold bulk of the unsold stock of lint.

According to market sources the unsold stocks lying with the ginners have declined below half a million bales and leading ginners are not inclined to sell above the prevailing price of Rs2,800 per maund.

“The standoff on the ready counter is due to pressure on ready stocks and ginner perceptions of a price flare-up in the coming weeks based on short supply,” said a leading broker.

He said leading spinners and mills are also awaiting the release of final crop figure for the current season during the next couple of sessions, which according to unconfirmed reports is lower than the revised production target of 12.30 million bales.

Market sources said in the absence of correct figures about the forward import deals signed so far by the mills and spinners, speculation about the supply and demand factors continue to fuel price flare-up.

Spinners and mills are also silent on the issue, according to official guidelines they have to report the detail of fresh deals to Trade Development Authority of Pakistan.

The details about the import figures would, in the final analysis, prove a price stabilising factor on the local market and in a way may check any price flare-up caused by fears about the nearby supplies, they added.

Official spot rates were again held unchanged at the weekend level of Rs2,725 per maund in the absence of any feedback from the ready section.