March 20, 2008	Thursday	Rabi-ul-Awwal 11, 1429

KARACHI, March 19: Cotton market maintained a quietly steady trend on Wednesday as some of the spinners picked up stray lots of both fine and inferior quality but others stayed away.

Some of the fine lots from the upper Sindh ginneries were traded between Rs3,400 and Rs3,450 per maund but spinners and mills were not inclined to pay more than Rs3,300 per maund for inferior lots.

However, the activity lacked normal buying and selling operations as price ideas of the both were poles apart and spinners appear to be in no hurry and did not bid beyond their export parity levels.

“After having imported more than three million bales worth Rs45 billion from various sources, including India, spinners and mills are sitting pretty comfortable on their inventories said to be enough for their annual consumption needs,” said a leading cotton analyst Naseem Usman.

That is perhaps why spinners are buyers, but at their own bid prices as they have to operate in a highly competitive world textile market, he added.

Market sources said the prevailing hide-and-seek game will continue between ginners and spinners as both now have their own options to operate.

“Ginners may not face any problem to sell a final unsold stock of 1.5m bales over the next couple of months before the new crop of lower Sindh belt arrives on the market, while spinners have already built-up long stock positions through imports,” they added.

However, ginners claim that some of the leading mills are active buyers of fine lots and are willing to pay Rs3,500 plus on ready basis, but “we are awaiting further increase in prices,” they said.

Official spot rates were again quoted unchanged at Rs3,300 per maund for an average type of lint.

New York cotton futures fell further but finished modestly lower by 0.28 and 0.67 cents per lb for both the ruling May and the forward July contracts at 75.02 and 77.23, respectively.

The following are some of the deals late on Wednesday evening: 1,800 bales, Gothki, Dharki and Mirpur Mathelo at Rs3,400 to Rs3,450; 800 bales, Shujabad at Rs3,350; and 400 bales, D G Khan at Rs3,300.