April 02, 2008	Wednesday	Rabi-ul-Awwal 24, 1429

KARACHI, April 1: Trading activity on the cotton market on Tuesday remained light as spinners kept to the sidelines most of the time awaiting sympathetic negative impact of falling world markets on the local prices, floor brokers said.

But there was no immediate identical fall on the local market after the New York futures breached through the barrier of 70 cents per lb on Tuesday, they said.

After having touched the 12-year peak level of 94 cents per lb last month, the New York cotton futures on Tuesday fell by a limit-fall of 2.34 cents per lb at 69.34 cents for the ruling May contract on selling triggered by reports of higher new crop planting intentions by the US farmers, they added.

The crop July settlement was also marked down by 2.31 cents per lb at 72.80, but indications are that it will also fall below the barrier on renewed selling.

But local ginners were not inclined to entertain sympathetic bearish ideas as leading among them were pretty sure that prices might fall from the current level owing to a short crop, some others said.

“An unsold stock of about a million bales may not be any marketing problems for the ginners before the arrival of the new crop,” leading spinners speculate adding: “That is, perhaps, why no one among the stockholders is inclined to lower his asking price”.

That is perhaps why fine lots are being quoted above Rs3,500 per maund from the southern Punjab cotton belt and some of the leading spinners are said to be willing buyers though on modest scale needed for blending purposes, they added.

Meanwhile, market sources said the Pakistan Cotton Ginners Association is expected to release the final crop figures on Wednesday, which may influence the current prices on the higher side.

Official spot rates were again firmly held at the last level of Rs3,300 per maund in the absence of feedback from the ready market.

Mill ready off-take was light amounting to about 2,000 bales, the following being some of the notable deals: 1,000 bales, Rahim Yar Khan at Rs3,550 and 600 bales, lower quality, Sadiqabad at 3,150.