March 11, 2008	Tuesday	Rabi-ul-Awwal 2, 1429

KARACHI, March 10: Trading on the cotton market on Monday failed to pick up as price ideas of ginners and spinners remained poles apart for the second session in a row.

“Each one them is anticipating a blinking, which in their opinion could set future price trend necessarily not guided by the global prices,” said a leading cotton analyst.

But as the spinners and mills are at the receiving-end owing to higher world prices amid short local crop, some of their weaker links may end the current stand-off, he added.

Although no fresh deal was reported till late Monday evening to the Karachi Cotton Association (KCA), unconfirmed reports said a few fine lots did change hands in the southern Punjab cotton belt.

Market sources said the stand-off on the ready front may continue for another couple of sessions depending on the global price trend notably on the New York Cotton Exchange.

“If there is fresh speculative selling in the New York Cotton Exchange future contracts in the backdrop of last week’s eight-cent drop, the local price balance could tilt in favour of the spinners and if buying resumes on the lower levels there might be more problems for the textile industry,” they said.

Meanwhile, a surge of Rs50 per 40 kg in cottonseed, a byproduct of cotton, at Rs700 to Rs800 reflects that lint prices may rule around the current level or above them, they said.

According to official sources, private sector exporters have registered with the Trade Development Authority of Pakistan 0.129m bales up to March 3 against their forward deals and have physically shipped 0.120m bales up to March 7.

Official spot rates were, therefore, again held unchanged at the weekend level of Rs3,350 per maund.

Dull conditions prevailed in the ready section in the absence of buyers and sellers.