June 24, 2008	Tuesday	Jamadi-us-Sani 19, 1429

KARACHI, June 23: Trading on the cotton market on Monday resumed on a firm note, thanks to the presence of active mill support below Rs4,000 per maund.

Floor brokers said instances of big-lot business was not wanting as leading spinners and mills were willing buyers of any number of lots offered below Rs4,000 per maund.

Bulk of the business was again reported in fine varieties from the upper Sindh as southern Punjab ginners were not inclined to sell below Rs4,000, they said.

“Higher rates of phutti being demanded by the central Punjab growers, where picking operations have been resumed on modest scale, seem to have changed the future price outlook of lint.”

They said the ginners, who are currently procuring the phutti at Rs2,100 per 40 kg, would not be able to sell the lint below Rs4,000 per maund after adding other overheads.

“Spinners and mills’ reaction to the changing cotton scenario on the price front will be known after the new crop hits the market by end of next month,” they added.

Some of the forward deals signed for central Punjab lint suggest that spinners are inclined to buy new lint at an average rate of Rs3,800 per maund.

Meanwhile, some of the ginners plan to resume ginning operations by early next month as growers continue dumping phutti into the ginneries though on modest scale, market sources said.

Official spot rates were again firmly held at the weekend level of Rs3,800 per maund, but in the ready section some of the deals were done well above this rate.

The following notable deals were finalised on the ready section on Monday evening: 1,778 and 768 bales from Dharki and Mirpur Mathelo at Rs3,850 per maund.