June 28, 2007	Thursday	Jamadi-us-Sani 12, 1428

KARACHI, June 27: Cotton market on Wednesday finished on a firm note as ginners are not inclined to sell their stocks below Rs2,800 per maund but spinners stayed on the sidelines owing to delivery problems because of rain.

But reports reaching here from the cotton belt indicate that the current rain spell is beneficial for the new crop as it is timely and moderate, floor brokers said.

“The notable feature is that the rain has washed away the pests and insects have attacked the new crop prior to the downpour leading to a healthy growth of the crop in some areas of the Sindh cotton belt,” they added.

According to market sources ginners, notably from the southern Punjab cotton belt are holding an unsold stock of about 50,000 bales.

“The current rain spell, which has delayed picking operations of phutti for about two weeks, has a positive impact on the holding capacity of the ginners,” said a leading floor broker, adding “spinners and mills have to opt for the available unsold stocks and at ginners’ asking prices”.

He said talks for a big deal between a ginner and a spinner was said to be in advanced stages and it was expected that it would be finalised at Rs2,900 per maund, the season’s highest so far.

Market sources said spinners and mills were expected to purchase all the unsold lots, notably fine ones after a break in the current rain spell fearing further increase in prices in sympathy with higher world markets.

Meanwhile, reports originating from the textile sector indicate that some consignments of imported lint both from India and other sources are on their way and are likely to arrive by the next week.

Official spot rates were firmly held at the overnight level of Rs2,600 per maund. But in the ready section, some of the deals were finalised around Rs2,750 and Rs2,800 per maund.