June 26, 2008	Thursday	Jamadi-us-Sani 21, 1429

KARACHI, June 25: Trading on the cotton market on Wednesday remained insipid as spinners and mills were not inclined to make fresh commitments at higher rates, apparently awaiting an improvement in supplies after ginners resume their new season ginning operations.

Reports reaching from the central Punjab belt said picking operation of phutti is said to be fairly active. Ginners claim steady arrivals mostly from retail growers, market sources said.

They said that the arrival of phutti into ginning factories was steadily rising and some of them are planning to resume procession operations of phutti by early next month.

If all goes well with weather conditions and if there is no fresh monsoon rain in the belt, there would be no disruption in the picking operation, as wet fields take many days depending on the intensity of rain to dry up, sources added.

They said that the new crop prices tend to move higher if some of the spinners and mills opt for panic buying, aided by higher prices on foreign markets.

Ginners said the rebound staged by the New York cotton futures on speculative support, aided by damage to crop by the recent rains in the major US crop area, could have a positive impact on the local new crop prices in the coming weeks.

New York cotton futures on Wednesday were quoted higher by 1.31 and 1.18 cents per lb at 72.19 and 76.80 cents for both the ruling July and the forward October settlements, respectively.

There was, however, no change in the official spot rates, which were again firmly held at the last level of Rs3,800 per maund.

In the ready section, a lot of 600 bales from a Gothki ginnery was sold at Rs3,750 per maund.