December 05, 2007	Wednesday	Ziqa'ad 24, 1428

KARACHI, Dec 4: Physical activity on the cotton market on Tuesday shrank to modest proportions as spinners and mills were not inclined to go beyond the international parity level of Rs3,200 per maund.After the release of latest phutti arrival figures on Monday by the PCGA, some of the ginners had raised their asking prices on the perception that the steep decline of 1.7m bales in the arrivals could trigger panic-buying by the spinners, said a leading floor broker.

But spinners, who were not inclined to offer higher rates, withdrew to the sidelines rather than indulging in panic buying which caused sharp decline in the daily mill intake, the broker added.

“The battle of wits between the ginners and spinner to outwit each other on the selling price front will continue during the next couple of sessions, but indications are that spinners and mills may be the ultimate winners”.

Some of the leading spinners had already made substantial import deals from various countries and were not in a hurry to pay more for the local lint, some others said.

“An unsold stock of 1.6m bales may force ginners to lower their asking prices in the coming sessions,” said a spinner, adding “a sum of about Rs20 billion is tied to unsold stocks of the ginners and they have to sell in part to meet bank demands”.

The current standoff on the ready counter may continue as both the ginner and the spinner would stick to their price ideas but analysts hoped normal trading would resume during the next couple of sessions.

Meanwhile, reports coming from the cotton belts indicate that growers are in a bit hurry to dump their phutti stocks into the ginneries fearing further decline in prices.

Official spot rates were again firm held at the last level of Rs3,075 per maund for an average variety of lint.

Ready business was on the lower side owing to higher asking prices by the ginners. As a result, about 8,000 bales, changed hands mostly from the Punjab cotton belt, while Sindh ginners held on to their positions.

The following were some of the notable deals which gone through on Tuesday evening: 1,000 bales, each Rahimyar Khan and Khanewal at Rs3,200, 400 bales, Bukkhar also at Rs3,200, 600 bales, each Haroonabad and Mian Channu at Rs3,150.