September 28, 2007	Friday	Ramazan 15, 1428

KARACHI, Sept 27: Cotton market on Thursday resisted fresh decline as ginners did not further lower their asking prices owing to a considerable decline in the phutti arrivals.

Analysts said the shaky ginners, who sold in panic bulk of their unsold stock during the last two sessions fearing decline in prices, had again brought grower in the game who held back phutti stock to avert further decline.

Of late growers were selling phutti at an average rate of Rs1,500 per 40 kg and they had to readjust their selling prices in line with lint to around Rs1,400 but they “used their tested weapon to hold on,” they added.

That is perhaps why prices remained stable and did not suffer fresh pruning but some brokers said prices could again rise to their pre-reaction level any time.

However, the cotton market is heading for a speculative squeeze in the weeks to come owing to a short crop in the US and persistent rise in New York cotton futures, floor brokers said.

But where the end will come is not clear. Most spinners think the current rates of lint are competitive and are out to build-up long positions, they said.

Physical activity was, however, maintained on the higher side as about 15,000 bales including some big-lot changed hands between Rs2,850 and Rs2,950 per maund depending on the quality of lint, floor brokers said.

They said Rs100 per maund difference in the selling prices of both Sindh and Punjab indicated that spinners and mills had a strong leverage to manipulate the prices on quality basis.

Official spot rates were again held unchanged at Rs2,875 but in the ready section some of the deals were done well below it.

New York cotton futures on the other hand ruled mixed. While ruling October contract showed a fractional rise of 0.5 cent per lb at 63.13, the distant December fell by 0.13 cents at 65.95 cents per lb.

The following were some of the notable deals which were done on Thursday evening:

SINDH TYPE: 3,000 bales, Mirpurkhas at Rs2,850 to Rs2,900, 2,000 bales, Shahdadpur, at Rs2,890 to Rs2,925, 1,000 bales, Tando Adam at Rs2,900 to Rs2,925, 400 bales, each Shahpur Chakar and Sanghar at Rs2,900.

PUNJAB VARIETY: 400 bales, Rajanpur at Rs2,910, 400 bales, Fazilpur at Rs2,900 to Rs2,910, 600 bales, Bahawalpur at Rs2,875 to Rs2,925, 800 bales, Haroonabad at Rs2,850 to Rs2,875, 600 bales, Arifwala at Rs2,850, 400 bales, Mongi Bangalow at Rs2,875 to Rs2,900, 200 bales, each Qutubpur and Kabirwala at Rs2,850, 400 bales, D.G. Khan at Rs2,900, 600 bales, Burewala at Rs2,850 to Rs2,875 and 1,000 bales, Bahawalnagar at Rs2,875.