KARACHI, Jan 5: Trading on the cotton market on Saturday further picked up as spinners were not inclined to take even a technical breather on the perception that the current rates are attractive enough to match their export parity levels.

Another about 20,000 bales changed between Rs1,500 per maund on the lower side and Rs1,800 for the fine types from the upper Sindh and southern Punjab ginneries, which ensure a fair margin minus the overheads and conversion charges.

The notable feature was that unlike the previous sessions most of the deals in fine types were finalized in line with the official spot rates, which means quality fully conformed to the lots in trade.

“With New York cotton futures ruling around 36 and cents per lb for the last several days, the current softening in local prices has given the needed push to spinner buying,” floor brokers said.

Both spinners and the ginners are, however, continue to be the victim of large unsold inventories owing partly to slump on the world markets and partly to the falling demand, they added.

Market sources claim, ginners are more worried and are liquidating their long positions in a bit hurry as spinners are reluctant to chase prices further higher because of fall in world prices.

“An unsold stock of about 2 million bales is considered massive, keeping in view ginners holding capacity,” they said, adding that is perhaps why weaker links among them are indulging in hasty selling to get out of the impasse to meet the bank demands.

But it is still unclear whether or not the prevailing prices fall in line with the export parity level of exporters as their continued absence from the market worries ginners.

Ready offtake was fairly active as till late in the evening about 20,000 bales changed hands as under:

SINDH TYPE: 4,000 bales, K-68, upper Sindh at Rs1,800, 1,000 bales, Kot Deji at Rs1,750, 1,000 bales, Mehrabpur at Rs1,750, 1,000 bales, Chundco at Rs1,750, 1,000 bales, Kumb at Rs1,750 and 600 bales of Bhira Road at Rs1,750 followed by NIAB-Sawgin, 319 bales, Sultanabad at Rs1.500, 500 bales, Moro at Rs1,700 and 500 bales, Moro at Rs1,725.