May 08, 2008	Thursday	Jamadi-ul-Awwal 2, 1429

KARACHI, May 7: Physical activity on the cotton market on Wednesday was cheerless as buyers and sellers adhered to their respective positions on the price front.

“It is a question of parity level on the export front and no one among us is inclined to go beyond it,” said a spinner who remains in the market and lifts all the lots that conform to his export price. But the rebound staged by the New York cotton futures on Tuesday did worry them as it would have sympathetic positive impact on the local price in the coming sessions, he added.

The New York cotton futures on Wednesday rose by 1.32 and 1.07 cents per lb at 68.11 and 70.36 cents for both the maturing May and the new crop July settlements, respectively, on revival of foreign demand.

“Cotton trade is heading for a bigger crisis as supply and demand factors in the backdrop of competitive world textile markets may outwit spinners in more than one way in the coming weeks,” some others said.

But ginners are not worried over the falling mill demand and are steadily holding on to their unsold stocks, totaling about 0.350 million bales, which could be sold in a couple of days, market sources said.

That is one of the reasons behind the low daily mill intake as ginners are not inclined to sell below their asking prices amid hopes that spinners will come back and lift them at better price, they said.

Meanwhile, private sector exporters had registered export contracts, up to April 30, amounting to 0.236 million bales, against which 0.210 million bales had already been shipped to various destinations, according to official sources.

Official spot rate was, however, again held unchanged at Rs3,350 per maund for the fourth session in a row in the absence of normal mill buying.

In the ready section stray lots changed hands including 200 bales, Nawashah at Rs3,375 and 200 bales, Sadiqabad at Rs3,150 per maund.