June 08, 2007	Friday	Jamadi-ul-Awwal 22, 1428

KARACHI, June 7: Trading on the cotton market on Thursday remained relatively dull but some brokers said about 2,000 bales from the southern Punjab cotton belt changed hands on around Rs2,600 per maund.

Most of the deals were confined to fine lots and went to the credit of Punjab spinners and mills apparently needing immediate supplies to bridge in supply gaps, floor brokers said.

However, most of the leading spinners and mills kept to the sidelines awaiting the textile package due to be announced in the budget on Saturday (June 9), they added.

Some of the leading ginners also were not that keen to dispose of their unsold stocks on the perception that speculated textile package could trigger fresh mills buying as most of them are short of annual supplies and are probing the world markets for imports, some others said.

Ginners holding an unsold stock of barely 0.150 bales, mostly of fine lots are not worried over the mills absence from the market for the last couple of sessions and are holding on to their positions confidently, they said.

But their perception is that the post-budget trading in cotton is expected to be in line with their thinking and on better prices as compared to the existing ones as spinners will go all out to grab the floating stock of lint aided by incentives in the budget, they added.

Meanwhile, reports reaching here from the lower Sindh and the central Punjab cotton belt indicate that picking operations of phutti are well in progress in both the areas and ginning operation are sure to be resumed by the middle of the next month.

Sowing of new crop in the major growing areas is also in advance stage and indications are that the deadline of June 15, is expected to be met, market sources said.

There was no change in the official spot rates, which were held unchanged at Rs2,600 per maund but on the other hand New York cotton futures on the other hand fell by 0.20 and 0.35 cents per lb at 51.55 and 55.05 cents for both the ruling July and the new crop October settlements, respectively.

In the ready section, about 2,000 bales of fine type are reported to have changed hands around an average rate of Rs2,600 per maund.