January 04, 2008	Friday	Zilhaj 24, 1428

KARACHI, Jan 3: Active trading was again witnessed on the cotton market on Thursday as mills and spinners continued to build-up long positions at the current level fearing fresh rise in prices.

While an average quality lint was traded between Rs3,075 to 3,175 per maund, fine lots both from the southern Punjab and upper Sindh ginneries was sold around Rs3,200, the highest rate being Rs3,225.

Floor brokers said the new opening above 70 cents per lb by the New York futures signals that the lint is heading for further squeeze by the leading speculative traders the world over in the coming weeks.

Already facing a local short crop, needing well over two million bales to bridge the supply gap and to cater to the annual consumption needs of the textile industry, no one could say the sailing will be smooth on the supply front, they said.

“Lint prices are heading for new peak levels and the industry is well aware of the developing scenario,” cotton analysts said “the expensive imports will have sympathetic impact on the local prices also in the coming months.”

However, the fresh increase is expected to be progressive owing to the orderly buying by the mills after the current pent-up demand caused by the law order situation is partially satisfied, they added.

According to industry sources, spinners had made forward deals for a substantial quantity of lint from various consignments against which are already reaching in their godowns.

New York cotton futures were quoted higher by 0.87 and 1.02 cents per lb at 68.88 and 70.59 for both the ruling March and the forward May contracts respectively, signaling bull-run elsewhere.

Official spot rates on the other hand did not show any change and were quoted at Rs3,075 per maund.

The following are some of the notable deals gone through late on Thursday evening:

SINDH TYPE: 5,000 bales, upper Sindh at Rs3,200 to 3,225, 800 bales, Tando Adam at 3,140.

PUNJAB VARIETY: 2,000 bales, each Khanewal and Rahimyar Khan at Rs3,150 to 3,200, 1,000 bales, Liaquatpur at 3,150 to 3,175, 1,000 bales, Kabirwala and 3,200 bales, Sadiqabad at 3,150 to 3,200, 1,000 bales, Rajanpur at 3,160, 400 bales, Shehar Sultan at 3,150, 400 bales, Bakhar at 3,200, and 400 bales, D. G. Khan at 3,140.