February 12, 2008	Tuesday	Safar 04, 1429

KARACHI, Feb 11: Trading on the cotton market on Monday remained at a standstill for the sixth session in a row as spinners and ginners are not inclined to go beyond their parity levels for good reasons too.

Spinners and mills say bulk of the fine type of lint had already been purchased by the leading textile groups and stray lots lying with ginners are being quoted beyond their export parity levels.

“After having purchased at an average rate of Rs1,600 per 40 kg of phutti throughout the season, it is not that easy to sell lint below the current asking prices,” said a leading ginner.

As a result, standoff on the ready front continues as no one is inclined to sell at a loss on the hope that prices could rise from the current level in due course, he added.

Market sources said selling prices are ruling high the world over despite higher crop in some of the major producing countries, notably India, the US and some other Central Asian countries.

“The local short crop may not be the only factor behind the current global price flare-up, there are some other supporting factors also, notably the market talk of strong presence of China on the world markets as a buyer,” said a local cotton analyst.

The world consumption is claimed to be on the higher side during the current season as compared to previous ones, and that factor is dominating the markets, he added.

Official spot rates were, therefore, again held unchanged at Rs3,150 in the absence of any feedback from the ready section.

Although some of the spinners and mills offered to buy a couple of lots but price ideas of sellers and buyers could not find a meeting ground. There was, therefore, no deal.