KARACHI, March 16: Brisk trading was witnessed on the cotton market on Monday as spinners and mills resumed their covering operations after ginners lowered their asking prices. Big-lot business was witnessed after several weeks of relative calm on the market as price ideas of buyers and sellers failed to find a meeting ground.

"The protracted stand-off between the ginners and the spinners on the price line at last witnessed a logical end," says a leading analyst commenting on the revival of mill demand. "Their role is supplementary and the two have to strictly adhere to their parity levels."

The spinners and mills lifted all the lots, including some big ones, after ginners lowered their selling prices from Rs3,100 to below Rs3,000 depending on quality as the fall was in line with export parity level of spinners.

"The price-war may now be virtually over as the ginners have realized that it would be pretty difficult for the market to return to return the December boom conditions in the backdrop of turmoil on the world cotton trading centres," market sources.

The fall of New York futures below the 70-cent per lb level appears to be the turning point in the psychology of the local market and ginners' perceptions about the future price outlook, they said.

Although leading ginners may still be entertaining higher price ideas and would like to hold on to their unsold positions for next couple of weeks the changing world cotton scenario now seems to be turning in favour of the spinners and mills.

It was perhaps in this background that the spinners purchased about 15,000 bales offered for sales by the ginners at the lower levels and dealers hoped some of the other ginners will follow them to keep their unsold positions evenly balanced in case prices eased further from the current levels.

Although most of the deals in the ready section were done well below the official spot rates, they were firmly held at the weekend levels. Ready off take was active as till late in the evening about 15,000 bales including some bit lots changed hands, the lowest rate being at Rs2,750 and the highest at Rs3,100. The following are some of the deals, which gone through:

SINDH TYPE:
1,000 bales, Dharki at Rs3,050; 1,000 bales, Mehrabpur at Rs2,850; 1,000 bales, Mandodaro at Rs3,000; 1,000 bales, Khairpur at Rs3,000; 400 bales, Shahdadpur at Rs2,750; and 400 bales, Nawabshah at Rs2,950 (one-month credit).

PUNJAB VARIETY:
1,000 bales, Mailsi at Rs2,900; 3,000 bales, Haroonabad at Rs2,800; 400 bales, Rahimyar Khan at Rs3,000; and 200 bales, Khanpur at Rs3,100.

The following are Monday's new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32" micronair value between 3.8 to 4.9 NCL.
Rate
for Exgin
price Ex-gin price
including
Sales Tax
Upcountry
Expenses Spot rate ex-Karachi
including Sales
Tax @ 15%

37.32 kgs 3,000 3,450.00 50 3,500.00
Equivalent
40 kgs 3,215 3,697.25 50 3,747.25.

DAWN