KARACHI, Jan 4: Brisk trading was witnessed on the cotton market on Friday as spinners were back in the rings and made an extensive covering purchases, fearing an imminent price flare-up owing to fall in phutti arrivals.

About 15,000 bales, mostly in big lots, changed hands as leading textile groups were not inclined to sit on the sidelines amid fears that a 10-per cent fall in arrivals of phutti for the period ended Jan 1, could push prices higher from the current levels, dealers said.

According to official arrival figures released by the Pakistan Cotton Ginners Association (PCGA) for the period ended Jan 1, 2002, the crop was short by over half million bales at 7.8m bales as compared to last year’s figure of 8.6m bales.

While Sindh cotton production was up by about five per cent as compared to last year’s final figure, Punjab cotton belt was again short by 10 per cent, which spinners fear could have a negative impact on the final production, says a floor broker.

As spinners and mills still have to go a long way to cover their annual consumption requirements, leading among them hastened to cover positions at the prevailing prices, he adds.

In normal trading season, mills consumption touches the high mark of 10m bales, but current year’s figure may be below owing to fall in exports, prevailing recession and Afghan war.

Although prices did not show any improvement from the previous as tired ginners were inclined to get out of their long positions, market analysts predict a modest rise in prices based on supply and demand factors.

Some analysts fear that larger unsold stock could push prices further down as weaker links among the ginners, having a little holding capacity, could resort to panic selling and the consequent further decline in rates.

However, the market direction will largely depend on the mill buying and revival of export demand as worried ginners are inclined to bail themselves out from the current impasse as early as possible.

Ready offtake was large totalling about 15,000 bales, the following being some of the notable deals, which gone through late on Friday evening: 3,000 bales of Rahimyar Khan at Rs1,800, 2,000 bales, Sadiqabad at Rs1,800, 1,000 bales, Yazaman at Rs1,700, 1,000, Bahawalpur at Rs1,750, 1,000 bales, Nurpur at Rs1,750, 500 bales, Ahmedpur East at Rs1,750, 500 bales, Alipur at Rs1,700, 2,000 bales, Uch Sharif at Rs1,725 to Rs1,750 and 500 bales of Bandhi at Rs1,725.