KARACHI, May 24: Cotton market on Friday lacked normal trading interest as buyers kept to the sidelines owing to two closures ahead and allied delivery problems.

Market sources predict normal trading may be resumed as an immediate threat of war with India is allayed after Vajpayee’s statement that “the sky is clear of war clouds.”

The market will remain closed on Saturday along with other major commodity markets including the Karachi Stock Exchange on account of 12th Rabiul Awal, with Sunday being the official closure.

However, reports coming from the lower southern Punjab cotton belt where the bulk of the unsold stock is lying, indicate that some of the leading spinners are active and are lifting fine lots at much higher rates.

Dealers said although the details about the lots in trade are not available, about 15,000 bales claimed to have changed hands in direct deals between the ginners and the spinners.

In the backdrop of cancellation of sale contracts of over 0.150m bales by TCP, ginners are trying to woe the spinners, notably a big cartel to lift big-lots collectively being offered by a some leading ginners, they added.

According to them the figure of unsold stock could be much lower than the previous total of a million bales as ginners have sold substantial quantities during the current months at much higher rates.

Thursday’s deal at Rs1,775 per maund is claimed to be one of the big-lot business, says a leading broker.

He said owing to very selective procurement criteria, liquidity-starved ginners are opting for the spinners as most of the deals are being finalized on cash basis.

Meanwhile, spinners say the export business could show a significant improvement if the current standoff and tension on the borders could be defused.

The prevailing war-like situation has scared away foreign buyers of cotton yarn and made-ups owing to fears of war and disruption in physical shipment against the firm orders, they added.

It was perhaps in this background that official spot rates remained basically unchanged from the previous level, while the New York cotton futures maintained their upward drive and finished with an extended gain of 0.15 and 0.10 cents per lb at 37.30 and 39.65 cents for both the ruling July and the distant October settlements respectively.

Local brokerage houses said ready business was dull as till late in the evening no ginner reported any deal with the spinners.