June 06, 2007	Wednesday	Jamadi-ul-Awwal 20, 1428

KARACHI, June 5: Trading on the cotton market on Tuesday remained insipid as leading spinners and mills again kept to the sidelines awaiting further developments on the international markets.

The relative calm was also attributed to market talk of fiscal relief in the new federal budget for the textile sector to give needed boost to exports.

The normal trading is expected to be resumed during the post-budget sessions as by that time tax and relief proposal will be out for the cotton sector, dealers said.

But some brokers said weaker links of the leading spinners were, however, remained in the market and purchased modest lots of inferior type of lint from the central Sindh cotton belt for blending purposes.

Spinners said the fall of New York cotton futures below the benchmark of 50 cents per lb has raised hopes for competitive supplies from the other markets. Although details of the fresh deals below 50 cent per lb mark are not immediately known, some of the leading spinners and mills have reportedly signed deals with foreign exporters for nearby delivery, they added.

World cotton prices have been on the rise since Pakistan entered the world market as a big buyer to bridge the supply gap of about 2m bales caused by a short local crop.

But some others said most of the leading spinners and mills are interested in the Indian lint partly because of a substantial saving on the freight and partly to immediate deliveries.

Official spot rates resisted fresh fall after having fallen by Rs50 during the last two session and were held unchanged at Rs2,600 per maund.

But New York cotton futures on the other hand fell by 0.49 and 0.60 cents per lb at 49.99 and 53.70 cents per lb for both the ruling July and the distant October settlements, respectively.

A leading broker said about 1,000 bales, mostly from the Sindh cotton belt changed hands but details were not available.