May 20, 2008	Tuesday	Jamadi-ul-Awwal 14, 1429

KARACHI, May 19: Trading resumed on a quietly steady note on the cotton market on Monday as buyers remained conspicuous by their absence despite the fact that some of the ginners lowered their asking prices.

Floor brokers said as new crop from central Punjab cotton belt would be available by the middle of the next month, though on a modest scale, some of the ginners holding odd lots sold them below Rs3,500 per maund.

“It is better to clear the odd positions anticipating a fresh increase in prices as arrival of the new crop may work against the prevailing market trend,” fears a Sindh ginner.

The forward deals signed by some of the central ginners with the spinners stipulate delivery by the middle and at the end of the next month, which in a way had halted a fresh price-hike on the local market, he said.

During the previous seasons, the new crop lint had been on the market by the next month, but sowing of the new crop was delayed during the current year owing to irrigation water problems and because the Punjab growers led the new season lint marketing, market sources said.

The central Punjab ginners did follow their Sindh counterparts during the previous seasons after having based their forward deals on the lower Sindh phutti, they added.

According private surveys, ginners of both the Sindh and the Punjab are still holding an unsold stock of 0.325m bales, of both fine and inferior types.

Meanwhile, reports coming in from the major cotton growing areas indicate that the sowing of the new crop is well in progress and is expected to be completed by the middle of next month.

Early sown crop is said to be progressing well owing to extremely hot weather, which kills pest attack on the tender plants.

Official spot rates were held unchanged at the previous level of Rs3,475 per maund in line with some of the deals finalised in the ready section, the following being some of them; 340 bales Ghotki and 440 bales, Mirpurkas at Rs3,475.