May 27, 2008	Tuesday	Jamadi-ul-Awwal 21, 1429

KARACHI, May 26: Trading on the cotton market on Monday resumed on a bullish note but the physical business remained at low ebb as ginners were not inclined to lower their asking prices.

“Ginners are now eyeing the price level plus Rs4,000 per maund,” local brokers commenting on the low mill off-take said, adding, “the manageable unsold stocks held by them is said to be the chief motivating factor behind the price hike”.

According to market sources the unsold stock of 0.250 million bales, lying with the ginners, has encouraged them to name their own prices as the arrivals of new crop are too small to influence prices on the lower side at this stage.

“Unlike the previous seasons when ginners held more than a million bales of unsold stock of lint, some of them did indulge in panic-selling to meet the bank demand and settle overdraft limits before June 30, but there is no worry on that account,” said a ginner.

The unsold stock could be lifted by the spinners and mills just within two days if they opted for it depending on their export commitments, but they are pretty satisfied on their stock positions, he added.

The spinners and mills had imported well over 3.3 million bales of lint cotton from various countries during the past couple of months to make up the local crop shortfall and enter and leave the market at will as there is no pressure on them to make panic-buying, market sources said.

Meanwhile, reports coming from the central Punjab cotton belt where ginners had resumed ginning operations for delivery by the middle of the next month some weeks back are have also raised their asking prices to Rs4,000 per maund.

Official spot rates were quoted unchanged at Rs3,600 per maund but in the ready section some deals were done well above them.

Mill ready off-take was light amounting to only 1,000 bales, Harappa at Rs3,950.