August 08, 2007	Wednesday	Rajab 23, 1428

KARACHI, Aug 7: Cotton market on Tuesday maintained a bullish trend as fears about a short crop continued to fuel price flare-up despite guarded support being extended by the spinners.

Some of the fine lots both from the central Sindh and Punjab were again traded at four-year high of Rs3,300 per maund, the notable feature being that both fetched the same rate despite quality differential, floor brokers said.

“Selling rates in physical trading reflects that Punjab type, which is generally sold at premiums over its Sindh counterpart, may have some quality fault owing to late rain and reports of pest attack,” they said.

Although reports of pest attack in some areas of Mirpurkhas reached the market a couple of weeks earlier, higher prices indicated that it did not cause any damage to the standing crop and was timely controlled.

However, rising prices show that both spinners and the growers by now have a fair idea of the size of the crop and trying to remain competitive but the market has progressively slipped into the hands of grower, ginners said.

According to market sources most of the growers have raised their asking prices to a record high of Rs1,600 per 40 kg, which is pushing the prices of end-product.

“Local lint price at Rs3,300 per maund is said to be well above the ruling New York cotton futures and some of the spinners are inclined to go for foreign stuff to contain the local price flare-up,” they added.

Owing to persistent increase in lint prices in the ready market, official spot rates were also raised by Rs50 per maund at Rs3,050.

New York cotton futures on the other hand were quoted lower by 0.90 and 0.82 cents per lb at 61.95 and 64.07 for both the ruling October and forward December contracts respectively.

The following deals were reported in the ready section.

SINDH TYPE: 1,400 bales, Shahdadpur at Rs3,250 to Rs3,300 and 200 bales, Sanghar at Rs3,250 to Rs3,290.

PUNJAB VARIETY: 200 bales, Burewala at Rs3,300 and 200 bales, each Burewala and Dipalpur at Rs3,275.

The following are Tuesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,050 50 3,100.00

Equivalent

40 kgs 3,269 50 3,319.00