February 27, 2008	Wednesday	Safar 19, 1429

KARACHI, Feb 26: Cotton market on Tuesday maintained firm outlook as quality lint remained in strong demand, but ginners were said to be reluctant sellers anticipating further increase in prices.

Ginners said the continued price flare-up in New York futures had changed the world cotton outlook followed by reports that supplies could far exceed the consumption demand.“We are not in hurry to dispose of our unsold stocks at the spinners’ option,” said one ginner, adding “we will await the final bull-run on the New York cotton market”.

New York cotton futures for both the matured March and the ruling May contracts were steadily rising to hit their near-term target of 80 cents per lb as bulk of the world demand remained unsatisfied, he said.

There was a loud whispering in the cotton trading circles that the New York cotton futures might not touch their two-decade-old record of well over $1 per lb although they were certainly heading for a new high.

The ruling May contract again finished with a limit-gain of 3 cents per lb at 78.81 cents, while the March delivery rose by 1.98 cents at 77.60 cents, respectively.

Cotton analysts fear the rising world prices could lead to disruption in the cotton import trade as agreements signed by the spinners for about 1.5m bales might not be honoured as some of the exporters were likely to ask for revision in prices following recent surge in international rates.

There was, however, no change in the official spot rates but in physical trading most of the deals were done on quality basis.

Mill ready off-take was modest amounting to 7,000 bales as under: 5,000 bales, Rohri at Rs3,340, 400 bales, Upper Sindh at Rs3,375 and 1,000 bales, Rahimyar Khan at Rs3,100.