KARACHI, Aug 19: Cotton market on Monday resisted fresh decline as ginners held on to their positions rather than selling at the lower rates, halting the last couple of sessions downward drift.

Trading resumed around Rs.2,000 per maund but later ginners raised their prices and late in the evening some of the deals were done at the days best bid of Rs.2,050, indicating a further increase on Tuesday.

Prices of lint cotton have declined by about Rs.300 per maund during the last couple of sessions as spinners and mills stayed away owing to piling of unsold stock of cotton yarn and falling prices.

But they did not fall below the Rs.2,000 per maund level as was speculated at the fag-end of the last week, reflecting ginner resolve not to be overawed by the fears of a rumoured market crash, brokers said.

Ready offtake was, therefore, light as spinners were not inclined to toe the ginners price line and mostly stayed away. Some of the deals were done about Rs.50 higher as compared to previous week’s lower levels.

Owing to halt in lint prices, phutti rates also showed a modest improvement of Rs.25 to 30 at Rs.925 to Rs.930 per maund, although growers held on to their long positions apparently in a bid to push prices to previous level of Rs.1,000 per maund or above.

But spinners claim yarn prices on the local market did not show corresponding increase as compared to lint and as a result, they are suffering losses on account of conversion of lint cotton into yarn.

“After having ruled erratically during the last week on alternate bouts of buying and selling and the TCP tender, lint prices seem to have stabilized around the current levels at least for the near-term,” predicts a broker adding “but much will depend on the size of arrivals of phutti into the lower Sindh as well as central Punjab ginneries.”

Meanwhile, reports coming from the lower and central Sindh cotton belt indicate that because of warm and clear weather picking operations are intensified allowing several other ginneries to resume operations.

In line with the prevailing rates in physical trading, which have declined from the peak of Rs.2,350 to 2,050, official spot rates were also lowered by Rs.75 to 2,000 per maund.

Ready offtake was light as till late in the evening about 500 bales changed hands as under: 100 bales, Tando Adam at Rs.2,000, 200 bales each from Sanghar and Kot Ghulam Muhammad at Rs.2,050.