May 10, 2008	Saturday	Jamadi-ul-Awwal 4, 1429

KARACHI, May 9: Physical activity on the cotton market on Friday failed to pick up as most of the ginners in the Punjab cotton belt observed Friday as a weekly holiday.

However, some lots did change hands late on Thursday evening around Rs3,400 to Rs3,500 per maund for ready delivery.

The normal trading is expected to be resumed by tomorrow, dealers said.

But news from the lower and central cotton belts indicate that some of the leading spinner groups are making forward deals with the ginners of Sultanabad, Shahdadpur and Mirpurkhas for delivery during the middle of August for modest lots of 200 bales or slightly above, they said.

“There is nothing unusual in the forward deals as some of the spinners and mills each season at this time indulge in forward dealings in an apparent effort to ensure normal supplies to avert any interruption in supplies,” said a ginner.

However, what is more important is the offered price by the spinners, ranging from Rs3,700 to Rs3,800 per maund, which is much higher by Rs400 per maund than the prevailing rate of an average quality lint, he said.

He said current season’s below target cotton output seems to have forced spinners and mills to opt for forward deals in an apparent effort to balance their future supplies in case prices further rise or fall.

“How many forward deals go through at the time of delivery is anybody’s guess, but instances are not lacking where ginner or the spinner become defaulter in case prices rise or fall,” some others said.

There was no change in the official spot rates for the third session in a row but some of the deals, notably for fine lots, were finalised at much higher rates.