April 19, 2008	Saturday	Rabi-us-Sani 12, 1429

KARACHI, April 18: Trading activity on the cotton market was relatively slow but prices remained stable around the previous levels as the Sindh ginners held on to their unsold positions anticipating fresh rise.

A forward deal in new crop at Rs3,600 per maund has raised hopes that the price outlook during the new season may be on the higher side. During the previous season trading in the crop was resumed around Rs2,600 per maund and after moving either-way touched the seasonal peak at Rs3,600.

The other factor, which could keep prices of the new crop on the higher side, was steep increase in the cost of inputs, notably urea and DAP fertiliser and added to these were higher power rates, said a cotton analyst.

He said the new cotton season may be a bit difficult as prices of cotton may follow the price flare-ups witnessed in other commodities, some of them hitting all-time peak levels and cotton could hardly be an exception. Market sources said that owing to closure of major trading centres in the southern Punjab as ginners observe weekly holiday on Friday, physical trading did not pick up.

However, they said some of the Sindh ginners offered to sell stray lots around the previous levels as a result no deal was reported in the Punjab type, while small lots from the central Sindh ginneries did change hands, they said.

Floor brokers said as forward trading in the new cotton from the lower Sindh ginneries has resumed, spinners and mills will be able to plan for the future needs and its availability well in time.

Official spot rates were again firmly held at the last level of 3,300 per maund but in the ready section some of the deals were done above them.

But on the other hand New York cotton futures suffered fresh pruning and were marked down by 1.79 and 1.83 cents per lb at 71.75 and 75.28 for both the ruling May and the new crop July settlements, respectively.

Mills ready off-take was light totaling about 1,000 bales, all from the Sindh ginneries as under: 300 bales, each Rasulabad and Ranipur at Rs3,300, 100 bales, Sanghar at Rs3,375, and 200 bales, Shahdadpur at Rs3,400.