March 12, 2008	Wednesday	Rabi-ul-Awwal 3, 1429

KARACHI, March 11: The cotton market maintained a firm trend on Tuesday despite a fresh sharp fall in the New York cotton futures as ginners seem to be in no mood to follow the lead of global trend.

During the last couple of sessions, New York cotton futures crashed from the 12-year high of 92 cents per lb to 77 cents as did they rise on speculative support on reports of lower production in the US and Pakistan.

“A fall of 16 cents per lb in a couple of sessions should have triggered panic selling elsewhere, including Pakistan, but local ginners held on to their positions on the perception that supply and demand factor will finally prevail,” said a market source. The New York cotton futures on Tuesday were quoted lower by limit-fall of 4.00 cents per lb for the fourth consecutive session on trade selling and were last quoted at 77.28 and 79.11 cents per lb for both the ruling May and the distant July contracts, respectively.

The local lint did not follow the lead from the New York cotton market as spinners and mills were not inclined to go beyond their parity level of around Rs3,400 per maund for fine lots. Stray lots had changed hands at Rs3,600 per maund last week.

Cotton analysts said any further fall in prices slightly above 70 cents per lb on the New York cotton market could have a negative impact here and spinners’ absence for the last three sessions is said to be based on this thinking.

Moreover, imports will also be competitive if future prices fell to the 70-centre level and spinners could opt fresh forward buying pending the standoff on the Indian front.

Official spot rates did not show any change and were firmly held at the overnight level of Rs3,350 per maund.

In the ready section, stray business was reported, including 3,000 bales from Sadiqabad at Rs3,300 to Rs3,400 and 1,105 bales from Khanpur at Rs3,450.