October 03, 2007	Wednesday	Ramazan 20, 1428

KARACHI, Oct 2: Firm conditions were again witnessed on the cotton market on Tuesday as prices were quoted higher by Rs25 in physical trading amid an actively traded session.

The notable feature was that unlike the previous sessions, Punjab variety was sold at a premium around Rs2.950 per maund against its Sindh counterpart for the first time since the new season trading resumed, dealers said adding: “Yield percentage seems to be improving from the previous low of 12.5 per cent to 14 per cent plus.”

Floor brokers said near-panic buying by both the spinners and the mills for the last about two weeks is pushing prices of lint progressively higher each session, although the quality war between the leading parties has yet to begin.

During the last about two weeks, lint prices have risen from the low of Rs2,775 to 2,925 per maund, showing a progressive increase of Rs150 per maund and if the mill buying spree was maintained at the current level they could rise further higher, they said.

“Spinners and mills may have their own reasons behind their panic buying or an attempt to grab the floating stock at the current rates,” they said adding “with the TCP and the private sector exporters of cotton keeping to the sidelines, spinners are the sole buyers and they should behave like this.”

Market sources fear that the cotton trade is again passing into the hands of the grower and if he again held on to his stock of phutti as he did early in the season, prices may go up. Growers are already eyeing the price level of Rs1,500 per 40 kg plus.

“No one could dispute the fact that mill consumption has risen to 15m bales plus owing to higher exports but there should be no panic among the sole buyers as the crop is expected to be around the official estimate,” they said.

In the similar conditions as the prevailing one, they said the weaker links of the big textile tycoons always remain at the receiving end on the price front, they added.

Official spot rates were, however, firmly held at the last levels, while in the ready section most of the business was done well above them.

The following are details of some of the notable deals, which were gone through in the ready section on Tuesday:

SINDH VARIETY: 1,000 bales, Shahdadpur at Rs2,925 to 2,930, 1,000 bales, Tando Adam, 600 bales, Nawabshah and 400 bales, Sakrand at 2,925, 600 bales, Hala at 2,900, and 2,000 bales, Mirpurkhas at 2,900 to 2,915.

PUNJAB TYPE: 2,000 bales, Khanewal at Rs2,950, 1,000 bales, Chichawatni 600 bales, Burewala, 400 bales, Rajanpur, 200 bales, Jampur at 2,900, 200 bales, Jhang and 600 bales, Jahania at 2,915, 200 bales, each Haroonabad and Arifwala at 2,875 and 200 bales, Chishtian a 2,890.