April 10, 2008	Thursday	Rabi-us-Sani 3, 1429

KARACHI, April 9: Physical activity on the cotton market on Wednesday was light as ginners and spinners took rigid positions about the future price outlook apparently based on international demand and supply factors.

Stray lots, however, did change hands depending on quality of lint in trade, the lowest being Rs3,000 and the highest Rs3,500 per maund, with fine lots being sold at a premium.

But a difference of Rs500 per maund between the fine and inferior lots reflects major spinner emphasis on blending the latter with polyester fibre to produce yarn and cloth for foreign buyers, floor brokers said.

They said the use of polyester fibre with cotton had increased well over 35 per cent owing to higher lint prices both local and foreign, which the blended yarn or cloth competitive on the world markets.

Although prices of polyester fibre have shown increase owing to active mill demand, spinners claim wider use with lint keeps them competitive on the export market.

Meanwhile, import bill of lint from various sources has soared to 25.85m bales including 0.570m bales during February 2008, according to official figures released by the Federal Bureau of Statistics.

But according to spinners they still need about half a million bales more to meet their annual consumption demand.

Official spot rates were, therefore, again held unchanged at the overnight level of Rs3,300 per maund though fine lint was traded at much higher rate.

New York cotton futures on the other hand failed to maintain the overnight run up on selling and fell by 0.86 cents per lb at 71.94 and 75.49 for both the ruling May and the distant July contracts, respectively.

Ready off-take was modest as under: 400 bales, Ghotki at Rs3,425, 400 bales, Rahim Yar Khan at Rs3,400, bales, Sadiqabad at Rs3,000 and 600 bales, at Rs3,500.