April 08, 2008	Tuesday	Rabi-us-Sani 1, 1429

KARACHI, April 7: Trading on the cotton market on Monday resumed on a steady note as ginners held on to their unsold positions anticipating an increase in prices owing to pressure on ready supplies.

Stray lots, however, changed hands at the higher prices as spinners are trying to balance their inventories after earlier having purchased lint at much higher rates and expensive import above 70 cents per lb, floor brokers said.

As a result, leading among them enter the market like hurricane and lift all the lots offered by the ginners even at the higher rate of Rs3,500 per maund but the very next moment they withdraw to the sidelines leaving ginners guessing about the buying strategy, they said.

Physical activity, therefore, remains choppy as a leading cartel of spinners and mills is trying to keep prices within the current levels, which is said to be in line with their export parity levels.

But on the other hand ginners are banking on terribly lower unsold stock of about 0.8m bales amid hopes that supply and demand factor could push prices further higher in the coming week, market sources said.

Moreover, higher world prices above 70 cents per lb and analysts predictions of an imminent price flare-up on speculative squeeze is also keeping ginners in an optimistic mood and they are holding on to their position confidently, they added.

Meanwhile, private sector exporters have registered up to March 31, 2008 export contracts amounting to 0.191m bales and had physically shipped 0.169 bales to different world destinations during the same period, according to official figures.

Official spot rates were again quoted unchanged at Rs3,300 per maund but most of the deals in the ready section were done well above that level.

The following are some of the notable deals gone through on Monday evening: 800 bales, Sanghar at Rs3,355, 600 bales, and 2,000 bales, Sadiqabad and Rahim Yar Khan at Rs3,400, 1,600 bales, Khanpur at Rs3,490 and 1,000 bales, at Rs3,450.