March 30, 2008	Sunday	Rabi-ul-Awwal 21, 1429

KARACHI, March 29: The cotton market passed through a dull trading session as spinners and mills kept to the sidelines awaiting final crop figure due possibly by next week.

According to unofficial sources, the final crop figure could be around 10.16m bales as compared to last year’s 10.24 million bales, leaving an unsold stock of about a million bales.

“Spinners are expected to be back in the market by the next week and will try to lift all lots offered by ginners for sale, and in the process, prices may rise again,” said a cotton analyst, adding “if the New York cotton futures fell below the 70-cent mark, its negative fallout may be witnessed.”

The cotton trade is poised to enter a crucial phase during the next couple of sessions as supply and demand factors will set future trends, market sources said, adding “but in a case, there may not be any relief on the price front for the textile industry.”

Floor brokers said continued decline in New York futures, which are now close to breach through the barrier of 70 cent per lb for the ruling May contract, also proved an inhibiting factor amid hopes that import may be competitive below the 70 cent level.Over the last couple of weeks, New York futures had fallen by 22 cents per lb from the 12-year peak level of 94 cents to around 72 cents per lb, they said.

Meanwhile, reports reaching here from the lower Sindh cotton belt said new crop, which is normally sown in late February or early March, has been delayed owing to problem of irrigation water.

But on the other hand, growers of central Punjab have sown new crop on a substantial acreage, which is expected to arrive in late July, market sources said.

However, cotton growers of the Punjab cotton belt are taking corrective steps to control the pest attack, if any, which destroyed the last year’s crop there.

New York cotton futures on Saturday closed at 71.68 and 75.11 cents per lb, off 1.22 and 1.08 cents for both the ruling May and the new crop July contacts, respectively.

The local official spot rates on the other hand were again held unchanged at the previous level of Rs3,300 per maund.

Ready business was light as only 400 bales, from Bucheri changed hands at Rs3,400 per maund.