November 02, 2007	Friday	Shawwal 20, 1428

KARACHI, Nov 1: Cotton prices on Thursday remained stable around the previous levels as spinners were not inclined to go beyond the level of Rs3,200 per maund for their export parity reasons.

However, they lifted all the lots (about 30,000 bales) offered around or below this level in line with their forward commitments to their foreign trading partners.

Big lot business was again witnessed as leading spinners tried to corner bulk of the fine lots including from the Punjab ginneries to cover their forward sales of yarn and cloth. Most of the deals consisted of 2,000 to 4,000 bales.

Some of the deals in the Punjab varieties were done around Rs3,175 unlike the overnight uniform rate of Rs3,200 per maund at which bulk of business was transacted.

But some brokers claimed some of the leading spinners and mills were buyers above this level around Rs3,250 per maund, although no deal was officially announced at this rate.

“The price war has already gripped the market as leading spinners and mills having secured foreign markets are out to grab the floating stock of lint at higher rates,” said a leading broker.

Their weaker links -- who are not that financially strong and mostly rely on local sales – are worried over the developing situation on the cotton front and are anticipating some improvement on supply side, he said.

It was perhaps in this background that official spot rates were firmly held at the last level of Rs3,050 per maund for average quality but fine lots were sold at much higher rates.

New York cotton futures on the other hand recovered modestly and were quoted higher by 0.21 and 0.16 cents per lb at 64.08 and 68.74 cents for both the ruling December and forward March contracts respectively.

Mill ready off-take was maintained on the higher side totalling 25,000 bales, the following being some of the notable deals.

SINDH TYPE: 2,000 bales, Mirpurkhas and 1,000 bales each Shahdadpur and Sanghar at Rs3,075 to Rs3,100.

PUNJAB VARIETY: 4,000 bales, Bahawalpur, 1,000 bales, Alipur, 2,000 bales each, Ahmedpur East and Jalalpur, 1,000 bales each, D.G. Khan, Yazman, Liaquatpur, 400 bales, each Garma Raja, Shujabad and Fazalpur at Rs3,200, 400 bales, Samundri, 800 bales, Jahania at Rs3,175, 200 bales, each Haroonabad and Qutubpur at Rs3,170 and Rs3,150 respectively.