December 08, 2007	Saturday	Ziqa’ad 27, 1428

KARACHI, Dec 7: Cotton prices on Friday fell from the current higher levels as some of the ginners holding long unsold positions indulged in hasty selling fearing further decline in prices.Floor brokers said market talk of higher forward import deals by leading spinners and mills seemed to have worried ginners amid predictions that prices could fall further from the current levels.

Phutti prices plunged to Rs1,200-Rs1,300 per maund from the seasonal peak level of Rs1,500 to Rs1,600 per 40 kg as some of the growers sold their stocks in panic anticipating further fall in prices, ginners said.

Some of the ginners holding long unsold positions hastened in part to sell at the overnight levels but failed to find matching offers as spinners were not inclined to go beyond Rs3,150 per maund, while inferior types were sold as lower as Rs3,000.

“The snap fall in prices is contrary to existing supply position in the backdrop of a short crop,” said a leading cotton analyst, adding “ginners have to sell in part their long positions before Dec 31, 2007 to meet bank demands which led to an apparent panic”.

The ginners ignored the sharp increase in New York cotton futures to well over 65 cents per lb, which in turn could make imports of lint more expensive, he said, adding “but spinners are apparently relying on earlier forward deals signed about six weeks earlier”.

The official spot rates were lowered by Rs50 per maund in line with those at which physical business was being transacted.

New York cotton futures on the other hand were quoted further higher by 0.41 and 0.38 cents per lb at 63.78 and 65.36 cents for both the matured December and the ruling March contracts respectively.

Mill ready off-take was on the higher totalling about 20,000 bales, the following being some of the notable deals.

SINDH TYPE: 1,000 bales, Shahdadpur at Rs3,000.

PUNJAB VARIETY: 1,200 bales, Sadiqabad at Rs3,150, 2,400 bales, Rahimyar Khan at Rs3,100 to Rs3,200, 2,000 bales, Khanpur at Rs3,200, 1,000 bales, D.G. Khan at Rs3,150, 800 bales, Sardar Lund at Rs3,150, 600 bales, Lodhran at Rs3,150, 200 bales, Chishtian and 600 bales Alipur at Rs3,115 and 400 bales Bahawalpur at Rs3,125.

The following are Friday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,050.00 50 3,100.00

Equivalent

40 kgs 3,269.00 50 3,319.00