December 04, 2007	Tuesday	Ziqa'ad 23, 1428

KARACHI, Dec 3: Trading on the cotton market on Monday resumed on a firm note followed by reports of lower than market expectations arrival figure of phutti for the fortnight ended Nov 30, floor brokers said.

They said a sharp fall of 1.7m bales in arrivals over the corresponding figure last season sent a shock wave among the spinners and mills amid fears of an imminent price flare-up, they said.

The arrivals of phutti into the ginneries for the fortnight stood at 7.276m bales as compared to 8.780m bales during the same period last year, analysts said, adding that it could push prices further higher based purely on the supply and demand factors.While most of the deals in lint were done at the previous levels, phutti prices were quoted higher by Rs25 per 40 kg at Rs1,550 to Rs1,600 for the Punjab phutti and Rs1,450 to Rs1,550 for the Sindh depending on the quality, they said.

Floor brokers said the bullish impact of the lower phutti arrivals would be witnessed during the next couple of sessions as ginners would raise lint prices based on the higher rates being demanded by the growers.

The spinners and mills are worried over the future supplies as higher lint prices both on the local and foreign markets are having negative impact on their export drive after value-addition, they said.

The disturbing factor is that textile prices are not showing corresponding increase as importer are not inclined to raise prices in line with the higher cost of inputs including lint, they added.

Official spot rates were, however, again firmly held at the previous levels, although most the deals both in Sindh and Punjab lint were finalised at much higher rates.

Mill ready off-take was modest totalling about 15,000 bales, the following being some of the notable deals:

SINDH TYPE: 3,600 bales, Upper Sindh at Rs3,190 to Rs3,200, 1,800 bales, Dadu at Rs3,125 and 600 bales, Shahdadpur at Rs3,100.

PUNJAB VARIETY: 1,000 bales, Bahawalpur, 2,000 bales, Muhammadpur Dewan and D.G. Khan, 600 bales, Jalalpur, 400 bales, each Rajanpur, Muridwala and Rahimyar Khan and 600 bales, Sadiqbad at Rs3,200 and 400 bales, Haroonabad at Rs3,150.