September 07, 2007	Friday	Sha'aban 24, 1428

KARACHI, Sept 6: Trading on the cotton market on Thursday resumed on a steady note as there was no trace of overnight hasty selling by the ginners who confidently held the price line, floor brokers said.

Ginners did sell including some big lots mostly on their asking prices and refused to go below them. As a result, another about 20,000 bales changed hands around Rs2,800 per maund for the Punjab lint and Rs2,750 to Rs2,800 for the Sindh type.

Spinners and mills lifted all the lots offered as the recent decline in prices has made them competitive as far as their export parity levels are concerned, floor brokers said.

However, Wednesday’s fall in New York cotton by about one cent per lb may not have any relevance to local price situation but any further fall may well make imports a bit competitive, they added.

New York cotton futures fell by 1.10 and 0.99 cents per lb at 58.35 and 60.58 cents for both the ruling October and forward December contracts respectively.

Meanwhile, reports coming in from the ancillary industry are not that encouraging owing to falling prices of textiles on the world markets despite the fact that yarn prices are a bit lower.

“Both the spinners and end-product users are facing problems of varied nature, which mills claim are causing increase in the unsold inventories and the consequent financial problems,” said a leading spinner.

After having fallen sharply during the last couple of sessions, the official spot rates were firmly held unchanged at the overnight level of Rs2,775 per maund.

Mill demand remained active. The following being some of the notable deals:

SINDH VARIETY: 2,000 bales each Shahdadpur, Tando Adam and 1,000 bales each Sanghar and, Nawabshah at Rs2,750 to Rs2,800, 1,000 bales, Mirpurkhas at Rs2,750 to Rs2,775 and 600 bales, Khipro at Rs2,765 to Rs2,775.

PUNJAB TYPE: 400 bales, each from Haroonabad, Bahawalnagr, Sahiwal, Arifwala and Pakpattan and 600 bales from Chichawatni changed hands at Rs2,800.