July 17, 2007	Tuesday	Rajab 01, 1428

KARACHI, July 16: Prices on the cotton market on Monday were quoted further higher by Rs25 but physical business remained dull as spinners were worried over their export parity levels.

But in the ready section, some of the leading spinners and mills, who have secured export outlets on the foreign markets, lifted stray lots mostly at the ginners’ asking prices.

But others stayed on the sidelines anticipating a modest decline in prices followed by reports that more ginneries both in the central Sindh and Punjab cotton belt have resumed their operations, floor brokers said.

They said supply was expected to improve during the next couple of weeks but reports of damage to crop in Sindh owing to heavy rain and floods would continue to haunt spinners and mills about future supplies.

Prices on the physical market have almost stabilised around Rs2,950 per maund and Rs3,100 for the lower Sindh and Punjab varieties respectively.

They said those spinners and mills who had imported substantial quantity of lint around

55 cents per lb were in a pretty comfortable position but New York cotton futures at 68 cents had made import uncompetitive at least for the near-term.

“And in the absence of a balancing factor between the foreign and local prices, it appears a bit difficult to contain any price flare-up at this stage,” they added.

Official spot rates were again revised upward by Rs25 per maund for an average quality lint but they were still far below at which ready business was being transacted.

The following deals were done in the ready section on Monday: 200 bales, each Mirpurkhas and Sanghar at Rs2,950 and 200 bales, Burewala at Rs3,100.