May 30, 2008	Friday	Jamadi-ul-Awwal 24, 1429

KARACHI, May 29: Cotton prices on Thursday were quoted further higher by Rs50 per maund for the second session in a row as a section of leading spinners tried to grab the unsold stock below Rs4,000.

Floor brokers said the current price flare-up to the level of Rs4,000 has forced both the mills and spinners to buy any quantity below this rates but ginners are not that fool and eyeing the level beyond this.

Spinners had been very casual buyers during the last couple of weeks and did not go beyond a few hundred lots despite the fact ginners still hold an unsold stock of 0.250 million bales, they said.

The spinner strategy was that ginners will lower their asking prices in the absence of leading buyers but leading among them are now well-informed and are fully aware of the world market price trend its impact on the local prices, some others said. “The price war appears to be tilting in favour of the ginners after a great lull and indications are that spinners may not be in position to hold the price until the arrival of the new crop,” they said.

A big deal of 7,100 bales at Rs3,800 to Rs3,925 reflects that some of the spinners are also operating like a well-knit cartel amid hope to keep a collective watch on prices rather than opting for individual buying, they added.

Meanwhile, reports coming in from the major cotton-growing areas of Sindh and Punjab indicate that sowing of the new crop is in full swing and is expected to be completed before June 15.

But unlike the previous season, growers are not that enthusiastic about the B.T. seeds and are sowing only certified ones by the officials.

The spot rates were further raised by Rs50 per maund to Rs3,700 but in the ready section some deals changed hands well above them.

New York cotton futures turned mixed while the ruling July rose by 0.24 cents per lb at 66.49 and the distant October fell fractionally by 0.05 points at 71.46 cents.