January 26, 2008	Saturday	Muharram 16, 1429

KARACHI, Jan 25: Active trading was witnessed on the cotton market on Friday as spinners lifted all the lots offered by ginners for sale at a bit lower rate.

Although New York futures recovered from the early week lows on trade and speculative covering purchases, local ginners could not precisely decide whether or not hold on to their unsold stocks, market sources said, adding “their weaker links indulged in hasty-selling at lower rates.”

The fall of New York cotton futures below 70 cents per lb barrier seems to have sent shock waves around the world, followed by active selling amid fears of fresh fall in prices, they added.

But a smart recovery staged by them is expected to have a sympathetic impact on the world prices also in the next couple of sessions, ginners said.

The maturing March and the forward May contracts were quoted higher 1.56 and 1.54 cents per lb at 68.39 and 70.15 cents, respectively.

Bulk of the business, including a big lot of 9,000 bales from the upper Sindh ginneries was sold Rs100 lower as compared to previous rate at which fine type is being traded, floor brokers said.

Unlike the previous sessions, fine lots were also sold at Rs3,350 per maund instead of Rs3,400 as a section of ginners holding modest unsold stocks was inclined to clear the backlog, they said.

Some of the ginners are also worried over the higher import figure to make up the local shortfall, which could have a negative impact on local prices and sold in part their long holdings.

Official spot rates, however, did not show any change and were firmly held at the last close of Rs3,200 per maund for average quality lint.

About 15,000 bales changed hands in the ready section:

SINDH TYPE: 9,000 bales, Ghotki, Dharki, Mirpur Mathelo at Rs3,300.

PUNJAB VARIETY: 1,000 bales, Rahimyar Khan at Rs3,350; 800 bales, Sadiqabad also at Rs3,350; 600 bales, Lodhran at Rs3,200 and 600 bales, Multan at Rs3,300.