December 28, 2007	Friday	Zilhaj 17, 1428

KARACHI,Dec 27: The cotton market on Thursday consolidated the overnight gains amid active follow-up support both from the ginners and the spinners.

About 20,000 bales changed hands in the ready section, mostly in big-lot as there was no retail buyer and in the process some of the deals were finalized around Rs3,200.00 per maund for fine lots from the southern Punjab cotton belt, floor brokers said.

But most of the deals were done at a uniform rate of Rs3,150.00 per maund depending on the quality of lint in trade, they said.

Market sources said the second round of price flare-up during the current season reflects that unlike the previous decline in prices, the current run-up would be sustained as the size of the crop is has almost been established well below the revised target of 12.5m bales.

“From onward supply and demand factors are expected to set the price trend but in any case all pointers seem to be in favour of the ginners and growers”, they said.

The spinners and mills who could peep through the future cotton outlook are alert enough and are indulging in near-panic buying at the current levels, some others said. Reports from the world markets are also pointing to a higher prices as the New York are steadily rising to hit the peak level of 70 cents per lb.

The New York cotton futures were quoted higher by 0.54 cents per lb each for both the ruling March and May contracts at 67.12 and 68.49 cents per lb respectively.

Official spot rates were, however, firmly held at the last close of Rs.3,025.00 per maund.

Ready business was active as under:

SINDH TYPE: 1,200 bales, Dadu at Rs3,125.00.

PUNJAB VARIETY: 2,000 bales, Khanpur at Rs3.200.00, 1,000 bales, Rahimyar Khan at 3,125 to 3,150.00, 1,000 bales, each D.G.Khan , Muhammadpur Dewan, and Bahawalpur at 3,125.00 and 1,000 bales, each Khanewal and Rajanpur at 3,150.00.