KARACHI, April 21: Trading on the cotton market resumed on a dull note as spinners were not inclined to make fresh commitments after some of the ginners raised their asking prices.

Stray lots, however, did change hands as some leading spinners picked up fine and contamination-free lots at much higher rates including some deals at Rs2,600 per maunds.

There are several factors, which have slowed down the mill buying, notable among them are larger import commitments and falling prices of polyester fibre, which is used to produce blended cloth and yarn for export markets.

“But what seems to have put a temporary fullstop on the ready business was claimed to be selling of surplus stocks purchased at much lower rates by some of the leading exporters at the

prevailing prices who find local selling more attractive than the foreign ones,” market sources said.

The other negative development, which has taken steam out of the ready market for the last couple of weeks is reported inter-mill dealings in lint which also included some lots based on deferred payments, they added.

Ginners, who supposed to be in a advantageous position by virtue of falling unsold stocks have become victim of a short crop, a phenomenon in the cotton trading history, one broker claims.

For the last couple of sessions, apparently worried by the absence of spinners some of the ginners lowered their asking prices around Rs2,500 per maund depending on quality but failed to attract an appreciable demand from both from the mills and spinners.

Floor brokers said ginners may not hold an unsold stock of more than 0.3m bales, which are too meagre to meet the mill demand for the next couple of months but failed to tilt the price balance in their favour as spinners played their cards well.

The official spot rates, therefore, remained basically unchanged from the weekend levels in the absence of active ready business, which forms the basis of average daily rate.

Ready business was modest totalling about 4,000 bales, all from the southern Punjab ginneries as under: 2,700 bales, Ahmedpur East at Rs2,585, 1,100 bales, Vehari at Rs2,550 and 200 bales, Khanpur at Rs2,600.