April 01, 2008	Tuesday	Rabi-ul-Awwal 23, 1429

KARACHI, March 31: Cotton prices on Monday remained stable around the previous levels but physical activity was below the normal session in the absence of strong mill demand.

However, stray lots did change hands at an average rate of Rs3,400 per maund for fine lots held by the upper Sindh and the southern Punjab ginners, market sources said.

But they ruled out the possibility of any major change in the future price outlook as spinners and mills are fully booked with import consignments reaching here steadily.“The crop figures due during the next couple of sessions may not be a major market factor as spinners will absorb them as a bonus rather than tactical relief in short crop,” said a leading broker.

According to him some of the leading spinners may have imported lint more than their actual annual demand and may sell it to some others at better prices during the next couple of weeks.

Market sources put the import figure so far well over 3.5m bales and together with the local crop of over 10m bales total supplies amount to about 14m bales but spinners claim their annual consumption figure over 15m bales.

But larger imports of lint seem to have sidelined the ginners, who have entertaining higher price ideas owing to a short crop and panic mill buying, although both remains at the receiving end during the current season, said a ginner.

Official spot rates, therefore, did not show any change and were firmly held at the weekend level of Rs3,300 per maund.

Ready off-take was light totaling about 3,000 bales, the following being some of the notable deals: 1,600 bales, upper Sindh at Rs3,390 to Rs3,425, and 400 bales, Sadiqabad at Rs3,400.