May 03, 2008	Saturday	Rabi-us-Sani 26, 1429

KARACHI, May 2: Cotton market lacked normal trading interest on Friday as spinners and mills remained conspicuous by their absence apparently awaiting some positive developments on the world markets.

However, some of the spinners were seeking more supplies of inferior lots, both from the Sindh and the Punjab ginners, and managed to buy modest lots but no one among them is inclined to opt for fine lots owing perhaps to higher asking prices, floor brokers said.

They said buying capacity of some of the spinners and end-product users is terribly limited as their two dozen textile consignments worth about Rs2 billion are stuck up in various US ports for more than one reason.

However, some of the needy local mills did lift stray lots of inferior quality below Rs3,400 per maund to keep the wheels moving but a number of other buying offers failed to find willing sellers, they added.

Market sources said ginners who are holding bulk of the unsold stock of about 0.4 million bales, both of fine and inferior lots, are reluctant sellers amid hopes of a further increase in prices.

They said that the Pakistan Cotton Ginners Association (PCGA) is expected to announce the final arrival figures as well as that of mills purchases during the next couple of sessions, possibly early next week, which are expected to lure spinners and mills again back in the buying arena.

But some others said the size of the crop is already known and the final figure may not influence future prices either side and the status quo around the current prices would be maintained.

The talk of Rs4,000 per 40kg level now appears to be a far cry as spinners and mills had already purchased their total annual consumption requirements from various sources and may not opt for speculative buying partly because of financial constraints, they said.

Official spot rates were again quoted unchanged at the previous level of Rs3,375 per maund.

Ready business was slow as till late in the evening a deal of 2,100 bales, from a Dharki ginnery was reported at Rs3,320.