January 31, 2008	Thursday	Muharram 21, 1429

KARACHI, Jan 30: Cotton prices on Wednesday eased from the current higher levels as some of the ginners cleared the backlog of unsold stocks after having lost hopes of widely speculated flare-up.

Some of the deals in the ready section were finalised as lower as Rs3,075 per maund, while the average selling rates were in line with the official spot rates.

Ginners, who had been holding on to long unsold positions amid market talk of an imminent price flare-up likely to be caused by a short crop, at last decided to part with them as spinners and mills made orderly buying and did not opt for panic short-covering for the last couple of weeks, floor brokers said adding “disappointed ginners, notably those whose holding capacity was not that strong, indulged in selling at the lower levels.

The cotton trade seems to have been shifted to imported stuff as falling local intake by mills and spinners reflects that their worries over the future supplies are now over, said a leading broker adding light business in the ready section daily demonstrate the phenomenon.

The opening of the overland route for the Indian imported stuff seems to have taken steam out of the market, although the Indian lint is not that cheaper, he added.

Prices of both fine and inferior lots were quoted lower by Rs50 and 200 per maund from the mid-season peak level of Rs3,350 to 3,400.

Some ginners said the current fall in prices was mainly related to lower quality lots, which were traded between Rs3,075 to 3,150, while fine lots are being sold around Rs3,250 to 3,350 per maund.

Official spot rates, therefore, again held unchanged at Rs3,200 per maund for an average quality lint.

But New York cotton futures on the other hand showed fractional fall of 0.06 and 0.10 cents per lb at 68.24 and 70.06 for both the ruling March and the distant May settlements, respectively.

Ready off-take was modest totaling about 6,000 bales as under: 1,600 bales, Sadiqabad at Rs3,370, 3,000 bales, Rahimyar Khan at 3,200 to 3,350, 400 bales, Fazalpur at 3,150, 600 bales, Yazman at 3,350, 400 bales, Layyah at 3,075,400 bales, Shujabad at 3,155, 400 bales, Bahawalpur at 3,225 and 800 bales, D.G.Khan at 3,375.