KARACHI, July 18: Physical activity on the cotton market on Friday picked up modestly as spinners and mills remained active buyers of both the new and current crop lots offered at the prevailing rates.

But having a full control on the price line in the backdrop of pressure on ready supplies, ginners each time raised their asking prices by about Rs25 per maund whenever spinners re-enter the market, dealers said.

For the last couple of weeks, ready business never assumed normal proportions sometime because of spinner manoeuvring and sometime ginners reluctance to sell their stocks.

Floor brokers said although New York cotton futures have fallen below the 60-cent per lb mark are still higher than the local prices and mills and spinners are not inclined to go for imports.

“Both are in the ready market in a big way and some of them are said to be willing to pay a bit more for the ready deliveries”, they said.

According to them about 2,000 bales of the current crop but of fine quality from Khanpur, Lodharn and Multan ginneries changed hands between Rs2,500 and Rs2,550 per maund without 15 per cent sales tax.

New crop prices of lower Sindh lint almost have stabilized around Rs2,400 per maund and some of the leading spinners are lifting most of the lots offered for sale.

“The near-term price outlook appears to be bullish and until supply position improves, the lint may remain expensive for the spinners”, dealers said.

Moreover, the impact of the second spell of monsoon rain is unclear as it could work on both sides of the standing crop depending on its intensity, they said.

Meanwhile, the official sources said the drive for the contamination-free lint will also be launched in the upper Sindh cotton belt after a successful experiment in the southern Punjab last season.

Growers have been advised to send phutti into the ginneries without any packing as the widespread use of jute bag damages the quality of lint during the ginning process. Indications are that the instructions will be strictly followed by the growers when the picking resumes in their areas.

Reports coming from the lower Sindh cotton belt indicate that picking operations of phutti remained suspended owing to fresh rain and may be resumed by the middle of the next week after the rain water dried.

New York cotton futures were quoted further lower by 0.63 and 0.77 cents at 58.60 and 60.34 cents per lb for both the ruling October and the distant December settlements respectively.

There was, however, no change in the local spot rates, which remained pegged at the last levels.

Ready offtake was modest and together with 2,000 bales of the current crop, 200 bales, Burewala based on the Sindh phutti changed hands at Rs2,450 and also 100 bales from the Mirpurkhas at Rs2,400.