June 21, 2008	Saturday	Jamadi-us-Sani 16, 1429

KARACHI, June 20: Physical activity on the cotton market remained insipid as there were no selling offers from the Punjab ginners who observe Friday as weekly holiday.

Floor brokers said bulk of the unsold lint stock was held by the southern Punjab and upper Sindh ginners, the ready off-take remained slow despite the fact that some spinners sought fresh supplies around the current levels.

They said instances of inter-mill transactions were, however, not lacking as leading spinners and mills that had covered their consumption needs at the beginning of the season were claimed to be the net sellers.

“There is a difference of about Rs600 to Rs800 per maund in prices prevailing now and at the start of new crop and some leading spinners groups with enormous liquidity try to corner the floating stock,” they added.It is claimed that during the current season owing to a short crop, spinners find it more profitable to sell the lint to local users as its conversion into yarn and cloth is much costlier exercise, said a cotton analyst.

However, those who have traditional export outlets and their annual production is fully secured by forward deals remain active buyers, he added.

Meanwhile, spinners and mills welcomed fresh fall in the New York cotton futures in the hope that it could sympathetic negative impact on the local prices in due course.

The ruling July and the new crop for October settlements on the New York Cotton Exchange on Thursday were quoted lower by 2.38 and 1.92 cents per lb at 71.02 and 76.00 cents, respectively.

The local official spot rates were again quoted unchanged at Rs3,800 per maund.

In the ready section, mill off-take was light totalling 800 bales, including 200 bales from Saleh Pat sold at Rs3,700 per maund.