KARACHI, March 27: Physical business on the cotton market on Thursday remained slow as spinners were not inclined to bid above their pre-determined rates after taking into account their export parity levels.

Ginners also held on to their positions amid predictions that the next couple of weeks could be crucial for the cotton trade in the backdrop of supply and demand factors and whispering of a short crop, dealers said.

However, some of the leading spinners managed to lure weaker among the ginners not to stick to their asking price of Rs2,700 and lower them in line with the quality of the lint in trade, they added.

As a result, a ready business about 7,000 bales, was transpired well below the higher side, the lowest and the highest rates being Rs2,625 and Rs2,650, respectively. Stray lots from the upper Sindh ginneries also changed hands at Rs2,675, but on 40-day credit.

Floor brokers said both the spinners and the ginners were awaiting the arrival figures of phutti for the month of March, which will give a fair idea of the total crop and its likely impact on the price line.

“Lint prices may not have hit the peak level as three months are still to go before the new crop from the lower Sindh ginneries found its way into the market,” they said and added that in the “intervening period anything could happen giving a further boost to prices.”

And added to it are worries associated with the Iraq war and its likely impact on the economy as well as exports, which in turn could have a negative impact on the purchasing power of spinners amid fears of falling export orders.

Meanwhile, New York cotton futures further fell from the recent highs followed by speculative selling amid fears of interruptions in physical shipments to some of the countries because of Iraq war.

The decline in prices also reflected the prevailing uncertainty about the outcome of war in Iraq and implications of long-war for the US economy.

Both the ruling May and the distant July settlements suffered fresh fall of 0.93 and 0.87 cents per lb at 56.52 and 57.54 cents per lb, respectively.

Local spot rates on the other hand remained basically unchanged from the overnight level for the third session in a row, reflecting tight supply position.

Ready business was light and totalled about 7,000 bales as under:

SINDH TYPE: 200 bales, Gothki at Rs2,675 on 40-day credit and 600 bales at Rs2,640; and 400 bales, Mirpur Mathelo also at Rs2,640.