April 04, 2008	Friday	Rabi-ul-Awwal 26, 1429

KARACHI, April 3: Cotton market on Thursday maintained a firm outlook as ginners firmly held on to their unsold positions anticipating fresh increase in prices after the final arrival figures were released by the Pakistan Cotton Ginners Association. The figure of unsold stock with the ginners in the final arrival figures will largely set the future market trend, analysts said, adding “both the buyer and seller will tailor future policies on the supply and demand factors.

“The fact, that some of the leading spinners and mills go for fine lots well above Rs3,500 per maund, has encouraged ginners to hold on for another couple of weeks to get a still better price,” market sources said. They said although spinners are trying to maintain their export parity levels the changing world cotton scene and higher prices did not allow them to sit idle as they still need more lint.

Although the task to remain competitive on the tight world markets is pretty difficult, spinners are endeavouring to maintain a status quo after playing hide and seek game with the ginners.

“At times they enter the market with a bang and lift all the lots offered for sales by the ginners but they keep quiet for the next couple of sessions in an effort to contain prices within the current levels,” said a broker.

Meanwhile, reports coming from the lower Sindh cotton belt, where the crop is sown early owing to climatic conditions, is said to be further delayed owing to irrigation water problems. The crop is sown here in February or early March, market sources said.

New York cotton futures showed modest fall on selling at the overnight higher levels and fell by 0.27 and 0.29 cents per lb at 70.18 and 73.65 cents for both the ruling May and the distant July contracts, respectively.

There was, however, no change in the local official rates, which were again held unchanged at Rs3,300 per maund.

Ready off-take was slow totaling about 2,000 bales, the following being some of the notable deals: 400 bales, each Buchari and Kot Ghulam Muhammad at Rs3.350 per maund.