June 02, 2007	Saturday	Jamadi-ul-Awwal 16, 1428

KARACHI, June 1: Trading on the cotton market is progressively picking up as some of the spinners lifted another 4,000 bales including odd lots of low-mix from the centrally Punjab ginneries.

Floor brokers said fresh increase in New York cotton futures on speculative buying by the bargain-hunters, seems to have reinforced the spinner perceptions about an imminent price flare-up before the arrival of new crop.

“It appears to be two-prong attack to line up more supplies,” they said adding both spinners and mills are active on the import front also along with resumption of local buying.

Their return to local market though on modest scale reflects that spinners are trying to keep prices within the current levels and are making calculated buying, some others said.

Having a modest unsold stock of 0.175m bales, mostly of fine lots, ginners are least worried about the mill presence or absence as the arrival of new crop is still away by more than a month, they added.

Meanwhile, reports reaching here from the major cotton growing areas of Sindh and Punjab indicate that the growth of the new crop is normal and there are so far no reports of pest attack on the tender plants.

Ginners said extreme weather in the entire cotton belt has killed most of the pests, which generally damage the standing crop, leading to a healthy crop ensuring higher production.Official spot rates were again firmly held at the last level of Rs2,650 per maund but in the ready section prices were quoted in line with the quality premiums.

New York cotton futures on the other hand were quoted higher by 0.67 and 0.40 cents at 51.05 and 54.60 cents per lb for both the ruling July and forward October contracts, respectively.

The following are some of the notable deals, which gone through the ready section on Friday;

NEW CROP: 1,200 bales, Sultanabad at Rs2,500 delivery in August.

CURRENT CROP: 1,000 bales, from Sindh ginneries, exporter to mill at Rs2,550 and 200 bales, Nayabad at 2,510 and 142 bales, Vehari at 2,450.