KARACHI, Aug 1: Physical activity on the cotton market remained modest as spinners and mills extended guarded support in a bid to keep prices within the current levels.

Leading brokers reported some of the leading spinners were busy in lifting the lots already purchased to their godowns and the operations were said to be fairly smooth as there were no reports of default on the part of any of the ginners.

They said spinners were expected to be back in the market during the next couple of days but their main thrust would remain on the new crop lots, currently being offered below Rs2,000 maund by the lower Sindh ginners.

But some others said the trading on the market was expected to be normal after the TCP completed its current sale drive as some of the spinners would prefer to buy some fine lots from it rather than opting for short staple lint from the lower Sindh ginneries.

However, one thing appears certain the mill intake is expected to set a new record during the current season ending Aug 31, 2002 for more than one reasons, including higher export quota and resumption of normal operations by over a 100 and odd sick units, they maintained.

The future price outlook appears to be bullish partly because of higher local mill demand and partly to reports of pressure on world supplies owing to short crops in China and the US, dealers said.

It was perhaps because of this perception that most ginners are now not worried about the price outlook as they were some weeks earlier because of larger unsold stocks lying in their godowns, they added.

Meanwhile, reports reaching here from the cotton belt indicate that despite stray incidents of pest attack in some areas of the central Punjab, the growth of the new crop is normal because of warm weather.

However, growers say rain at this time of the season could be more beneficial than some weeks later but there are no signs of an early monsoon.

On the export front, private sector exporters have registered foreign sales contract for 2,352 bales, with the Export Promotion Bureau on July 30. All the lots were sold to Taiwan and Indonesia.

Official spot rates were again held unchanged at Rs1,925 per maund while New York cotton futures fell fractionally by 0.8 and 0.11 cents per lb at 46.95 and 48.49 cents for both the ruling October and the distant December settlements, respectively.

Ready offtake was light as till late in the evening 600 bales, of new crop, 100 bales from Mirpurkhas and 500 bales, from Samundri changed hands at Rs1,975 and Rs2,000, respectively.