March 16, 2008	Sunday	Rabi-ul-Awwal 7, 1429

KARACHI, March 15: Active trading was witnessed on the cotton market on Saturday as a section of leading spinners resumed normal trading to cover their forward positions against foreign sales of textiles.

Fine lots from the upper Sindh ginneries were traded between Rs3,400 and Rs3,500 per maund, while inferior ones were sold at Rs3,300 per maund.

Floor brokers said leading ginners, who had been holding bulk of the unsold stocks, seem to have taken a cue from the falling New York cotton futures and followed their lead and indulged in retail selling.

“The continued reversal of New York cotton futures, after having touched a 12-year high of 94.00 cents per lb a couple of weeks earlier, appear to have triggered partial selling by some of them,” they said, adding “the perception of a price flare-up to Rs4,000 per maund is fading each session as spinners are not inclined to go beyond the level of Rs3,500 per maund for fine lots.”

The fresh fall of 1.51 and 1.49 cents per lb at 79.30 and 81.90 for both the ruling May and the forward July contracts has sent bearish signals the world over and the local ginners could hardly be an exception, some others said.

They said the activity is expected to pick up further by the next week as both buyers and sellers have now a fair idea of future price outlook.

According to market sources, the production figure is expected to hit the revised total of 10.16m bales, as up to March 15, 10.14m bales have already arrived into ginneries.

However, Pakistan Cotton Ginners Association (PCGA) is not inclined to release fortnightly arrival figures for March 15, but will come out with final production total on April 1, they said.

Official spot rates were lowered by Rs50 per maund for an average quality at Rs3,300 after last couple of sessions’ stable stance.

Mills ready off-take was active, totaling about 10,000 bales, the following being some of the notable deals:

SINDH TYPE: 2,000 bales, upper Sindh at Rs3,425 to Rs3,500; 1,600 bales at Rs3,415, 400 bales, Mirpurkhas at Rs3,375 and 400 bales, Khipro at Rs3,400.

PUNJAB VARIETY: 2,900 bales, Chingoth, 1,000 bales, Janpur and 700 bales, Sadiqabad at Rs3,300.