May 14, 2008	Wednesday	Jamadi-ul-Awwal 8, 1429

KARACHI, May 13: Cotton market on Tuesday showed firm trend as prices were quoted higher by Rs25 per maund followed by reports of pressure on ready supplies.

But some floor brokers said the recent rebound staged by the New York cotton futures after having fallen below the resistant level of 70 cents per lb appeared to be the chief supporting factor behind the increase in local prices.

For the last couple of sessions, the New York cotton futures were steadily rising to their pre-reaction levels followed by reports that the US cotton exporters were receiving fresh big orders from various buyers, they said.

The New York cotton futures on Tuesday stabilised well above the barrier at 71.76 and 77.71 cents per lb for both the ruling new crop July and October contracts respectively, up by 0.26 cents per lb for each contract.

The rising international prices were impacting local market as some of the fine lots were traded as higher as Rs3,675 per maund, market sources said.

They said the increase in prices was based on supply and demand factors and may not be contained in near future in the backdrop of falling unsold stock of about 0.3 million bales lying in the godowns of ginners mostly in southern Punjab cotton belt.

Some of the needy spinners are said to be in the market to reinforce their stock positions and indications are that ginners may further raise their asking prices in case leading spinners attempt to grab the whole floating stock in one-go, they said.

It was perhaps in this background that official spot rates were raised by Rs25 per maund to Rs3,400 for an average variety. But in the ready section some of the deals of average quality were done at Rs3,600 per maund.

Following notable deals were changed hands on Tuesday evening: 372 bales, Harappa at Rs3,675, 200 bales each Buchari and Nawabshah at Rs3,600 and 1,000 bales, Vehari at Rs3,450.