KARACHI, May 11: Cotton market on Saturday resisted fresh decline aided by reports of sharp increase in world prices but ready offtake remained slow as spinners were not inclined to buy at the higher levels.

“The snap limit-gains in the New York cotton futures seem to have buoyed the ginners amid hopes that expensive world prices may force spinners to buy from the local market”, floor brokers said.

The New York cotton futures were quoted higher by 1.26 and 1.35 cents at 35.21 and 37.40 cents per lb for both the ruling July and the distant October settlements respectively.

The increase in demand from the world users and the deficient countries may be one of the reasons behind the run-up, brokers said adding “speculative traders have discounted the negative impact of the larger US crop estimates for the new crop at least for the near-term”.

“Reports that India plans to import about 2 million bales of lint from various countries after inviting international tenders”, cotton analysts said “India may have already been on a big shopping list on the world cotton markets if the steep increase in New York prices is any guide”.

Floor brokers said a relative calm in local cotton trading originates from the recent rapid developments on the world cotton scene.

Spinners have already imported over a million bales of lint during the last couple of months when the New York futures have plunged to new lows early this year and late last year.

“Indications are that the lint will not be that cheaper at the fag-end of the current season and spinners and mills have to rely on the local supplies rather than opting for fresh imports”, market sources said.

However, ginners appear to be in no mood to hold on to their unsold positions as weaker among them are trying to get out of them before June 30, to clear the bank dues including to adjust overdraft limits for the current cotton season to qualify for the new one.

Official spot rates, therefore, did not show any change and in physical trading stray lots changed hands in line with them depending on quality.

Ready offtake was light as till late in the evening about 2,000 bales changed hands, which also included 500 bales from Chundko done at Rs1,525.