April 22, 2007	Sunday	Rabi-us-Sani 04, 1428

KARACHI, April 21: The weekend session witnessed a modest physical activity on the cotton market as some of the spinners needing immediate supplies purchased fine lots at the ginners’ asking prices.

About 4,000 bales changed hands on Saturday mostly from the southern Punjab cotton belt as some of the leading spinners having active export outlets in their network were said to be main buyers, floor brokers said.

“I think spinners and mills are expected to resume normal buying operations possibly by the next week to cover their forward sales for the current quarter ending June 30,” said a ginner.

He hoped prices could rise from the current level - which is said to be much higher than spinner export parity levels.

But some others said the current decline in New York cotton futures below the 50 cents per lb mark for the ruling May contract had changed the future price outlook and import could be cheaper for the next couple of weeks.

“Spinners and mills are in the process of calculating the cost of local and foreign lint at the prevailing prices and indications are that some of them may opt for immediate import to make up their short positions,” they added.

However, it is too early to think of fall in the ginner asking prices being guided by supply and demand factors in the backdrop of a short crop rather than in line with international market trend.

That is perhaps why ginners who holding an unsold stock of about 0.410m bales are little worried and sitting pretty comfortable on their holdings.

Official spot rates were again firmly held at the last level of Rs2,725 per maund but some of the deals of fine lots were done above them.

New York cotton futures on the other hand recovered from the recent lows on revival of world demand and were quoted higher by 0.49 and 0.76 cents per lb for both the ruling May and forward July contracts at 49.64 and 52.09 cents respectively.

The following were some of the deals gone through in the ready section on Saturday evening: 1,800 bales, Rahimyar Khan at Rs2,775 and 1,000 bales, Khanpur at Rs2,800.