December 18, 2007	Tuesday	Zilhaj 7, 1428

KARACHI, Dec 17: Trading activity on the cotton market on Monday remained slow as spinners and mills did not opt for fresh big deals owing to delivery problems because of Eid holidays.

Stray lots, however, did change hands around the previous levels for nearby delivery apparently from the local godowns of ginners between Rs3,050 and Rs3,150 per maund depending on the quality of lint, dealers said.

A big deal of 2,000 bales from an upper Sindh ginnery was signed at Rs3,190 to Rs3,200 per maund on one-month credit with delivery in late January next, they said.

But on the other hand physical activity remained well below the normal as spinners and mills mostly adhered to the sidelines and as result prices remained stable around the previous levels, they added.

Floor brokers said the activity could pick up after the holidays as some of the leading spinners would be in the market to cover their year-end positions against their textile export commitments.

But some others said the national election on Jan 8, could also have a negative impact on the ready market as some of the ginners would like to join the election campaign of political parties of their choice rather than indulging in cotton trading.

Meanwhile, prices stayed firm around the previous levels despite market talk of higher import to make up the local crop shortfall, market sources said.

They said the perception that the local crop shortage would continue to have positive impact on the prices irrespective of imports holds good as weaker links of the textile sector prefers local stuff than opting to imports.

As a result, official spot rates were firmly held at the weekend levels, although some of the deals were done well above them.

The following are some of the deals, which gone through in the ready section on Monday evening:

SINDH TYPE: 2,000 bales, Dharki at Rs3,190 to Rs3,200 (on credit), 1,600 bales Shahdadpur at Rs3,025 to Rs3,100 and 800 bales, Hala at Rs3,050.

PUNJAB VARIETY: 400 bales, each Alipur and Rajanpur at Rs3,150 and 500 bales, Bahawalpur at Rs3,100.

The following are Monday’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 3,000.00 50 3,050.00

Equivalent

40 kgs 3,215.00 50 3,265.00