June 13, 2007	Wednesday	Jamadi-ul-Awwal 27, 1428

KARACHI, June 12: Trading on the cotton market on Tuesday failed to pick up as spinners and mills were still in process of finalising their post-budget covering operations.

The new budget, which is said to be textile-friendly as it carries many incentives will lure spinners back into physical trading, is still unclear, floor brokers said.

But some others said they were expected to be back on the market as the suspense about widely speculated relief package was over and they would have to operate within the confines of the new budget.

Leading among them were already haunting the foreign markets to meet their seasonal consumption demand, while others may opt for local buying as ginners still hold an unsold stock of about 0.150m bales, they said.

“The market could witness a post-budget buying euphoria as spinners will try to lift all the lots lying with the ginners at a bit higher rates,” said leading brokers.

Some of the leading ginners of southern Punjab cotton belt are said to be eyeing higher prices of Rs2,700 per maund based on some perceptions of the new budget on the textile sector.

Spinners are expected to sign forward deals with the lower Sindh ginners for the new crop for delivery sometime late next month. Ginners are said to be seeking price level for the new crop at Rs2,550 per maund.

Meanwhile, reports coming from the Punjab cotton belt indicate that growers have almost completed the sowing of new crop and the growth rate of early sown crop is said to be quite satisfactory.

Official spot rates were again held unchanged at the last level of Rs2,600 per maund in the absence of any feedback from the ready market.

For the second session in a row no business was reported in the ready section in the absence of buyers.