June 10, 2008	Tuesday	Jamadi-us-Sani 05, 1429

KARACHI, June 9: Cotton market showed a firm trend on Monday as prices were quoted further higher by Rs50 per maund as ginners were not inclined to sell below Rs4,000 per maund.

With the second consecutive upward revision of an average quality lint by the official rate committee to Rs3,800 per maund, ginners acted swiftly and also raised their asking prices, dealers said.

During the last week, some of the lots changed hands between Rs3,850 and Rs3,950 per maund depending on the quality of lint, but they said ginners were now asking higher prices, irrespective of the quality.

But some others said as new crop is a bit late owing to canal water problems and late sowing, the unsold stocks with the ginners had fallen to a modest, total enabling them to raise their asking prices.

“Some of the private sector exporters who had modest stocks meant for exports are now offering to sell them to spinners as the current rates are attractive enough and leave a fair margin of profit as compared to exports,” said an exporter.

“Why should we go for exports when the commodity is needed by mills and spinners and at a fairly higher rate,” he said.

Private sector exporters may have in their godwons about 18,000 bales of lint as against their forward export contracts of 0.262m bales, they have so far up to May 31, physically shipped 0.243m bales to various destinations under the previously signed forward deals.

An exporter sold 400 bales for Karachi delivery at Rs4,000 per maund but there was no other deal reported in the market between the ginners and the spinners on Monday.