KARACHI, Nov 1: Firm conditions were again witnessed on the cotton market on Thursday as ginners further raised their asking prices because of pressure on ready supplies.

Ready offtake was, therefore, relatively low as spinners were not inclined to chase prices further higher keeping in view their export parity levels for yarn and cloth exports.

“The growers may not be holding back stocks of phutti to push prices further higher at least to the level of official procurement rate of Rs780 per 40 kg but ginners claim a considerable decline in daily arrivals”, local market sources say.

They say growers may be following the lead given by the sugarcane growers last season after they refused to deliver their crop until payments are made on cash basis and they got a fair prices for their produce.

But cotton growers may have other reasons to hold back stocks including a major change in the world cotton outlook and a relative improvement both in demand and prices.

Floor brokers said as the picking operations in the upper Sindh and southern Punjab cotton belts are still gather peak season momentum, the arrivals of phutti have been slowed down.

“The future market outlook and the size of the crop will be clear after Nov 15, when the arrivals of phutti are expected to flood the ginneries and will determine the spot rates”, they added.

Meanwhile, leading spinner groups are in the market and are indulging in big-lot business to outwit the TCP people whose strong presence has taken away the price initiative from the spinners.

The other aiding positive factor was a rebound staged by the New York cotton futures, reflecting the world demand, which in turn could push yarn prices from the current lower levels, dealers said.

After a several lean sessions, the New York cotton futures recovered 0.98 and 0.65 cents at 29.90 and 31.23 cents per lb for both the ruling December and the distant March settlements.

Local official spot rates were also quoted further higher by Rs15 per maund in line with the prevailing in physical trading.

Ready offtake was relatively slow as till late in the evening about 1,000 bales changed hands, the following being some of the notable deals: 200 bales, Lodhran at Rs1,780, 400 bales, some other stations at Rs1,770 and 200 bales, Gojra at Rs1,700.

The following deals were finalized late on Wednesday evening as reported by cotton consultant, Naseem Usman: 6,000 bales, Bahawalpur at Rs1,800, 1,000 bales, Rahimyar Khan at Rs1,800, 2,000 bales, Sadiqabad at Rs1,800, 200 bales, Bahawalnagar at Rs1,650 and 400 bales, Muridwala at Rs1,700.