January 10, 2008	Thursday	Zilhaj 30, 1428

KARACHI, Jan 9: Trading on the cotton market on Wednesday slowed down as spinners were not inclined to go beyond the current level followed by reports that some of the ginners have further raised their asking prices.

Sindh types were traded between Rs3,250 to Rs3,325 per maund but fine varieties from the Punjab cotton belt were sold at Rs3,350 to Rs3,400.

However, slowdown in mill buying did not allow fresh increase in prices although spinners have still to go a long way to cover their annual consumption needs of about 15m bales.

After having purchased 7.5m bales so far they are half way and leading spinners are worried about how to honour their export commitments amid short cotton crop and higher world and local prices, analysts said.

“A cartel of spinners took a technical breather after having purchased over 0.1m bales, notably of fine quality,” floor brokers said, adding “it appears to be an effort not to fuel a fresh price flare-up”.

However, they said it may not be possible to contain prices within the current level as demand and supply factors are in now in operation.

While spinners and mills are at their toes, ginners sitting pretty comfortable on the large unsold stocks amid hopes that prices would rise further in the coming weeks, they added.

Official spot rates were held unchanged at the overnight level of Rs3,200 per maund for average quality of lint but well below those at which the ready business was being conducted.

New York cotton futures on the other hand showed fresh modest rise of 0.48 and 0.44 cents per lb at 69.43 and 71.07 cents for both the ruling March and the forward May contracts, respectively.

The following notable deals were finalised in the ready section on Wednesday evening:

SIND TYPE: 400 bales, each Oderolal, Daulatpur, Shahdadpur at Rs3,250 and 300 bales, Shahdadpur at Rs3,325.

PUNJAB VARIETY: 4,000 bales, Sadiqabad and 2,000 bales, Rahimyar Khan at Rs3,350 to Rs3,400 and 2,400 bales, Mian Channu at Rs3,400.