By our correspondent
KARACHI: (March-4) The cotton market lacked trading interest on resumption of trading on Wednesday.

Though prices ruled steady but buyers continued to maintain a low profile anticipating further decline in prices. Stray business took place in lower and upper Sindh cotton at Rs2,700/3,050 for lower grade and Rs3,200 for higher grade. Official spot rate was unchanged at Rs3,100.

The dullness of the market contrasted last Saturday’s active trading. Having covered their forward sales before Ashura holidays, the spinners retired to the sidelines.

However, the ginners maintained their firm stance in view of the bullish advice from New York market where the price has crossed the 70 cents’ mark in the wake of heavy Chinese purchases.

They expected that the world cotton prices will rise further following heavy purchases by China and the spinners will have to pay the asking prices through their nose since imports will become very expensive.

The world market is obsessed with highly bullish fervour following the entry of China into the world market with its long shopping list.

The buyers waited for the release of the PCGA report for the fortnight ending February 29. This is expected to set the direction of the market by confirming or giving the lie to the rumours about an output of about 10 million bales this season.

The turn of the tide in favour of ginners is giving anxious moments to the spinners who have yet to go a long way to meet the requirement of 12 million bales. If China stays in the international market for long and the local Pakistani crop falls much below the expected 10 million bales, the ginners will have a field day.

Therefore a sort of standoff continues between the spinners and ginners but the latter seem to be the ultimate winner.

Ready business stood at 3,000 bales out of which 200 bales Sanghar were sold at Rs2,700, 200 bales Sanghar at Rs2,950, 400 bales Nawabshah at Rs3,050, 800 bales Mirpurkhas at Rs3,000 and 1,000 bales M Dero at Rs3,200.

The News