KARACHI, Oct 31: Cotton prices on Friday remained stable around the previous levels as ginners did not further raise their asking prices despite steady mill demand.

Bulk of the business again remained confined to the Punjab variety because of its fine staple length and higher micronaire and about 10,000 bales changed hands between Rs3,400 on the lower side and Rs3,500 on the higher side depending on the quality of lint, brokers said.

Leading spinners needing lint to produce higher counts of count yarn for the export markets appear to be the leading buyers at the current levels as they seemed to have convinced their trading partners to share the increase in local lint prices, they said.

However, they anticipate a modest fall in prices from the current higher levels despite a short crop in line with the New York cotton futures.

New York cotton futures on Thursday fell by limit-loss for the first time during the current season on speculative selling triggered by reports of a decline in the forward buying by some of the leading deficient countries, notably China.

Both the ruling December and the distant March settlements were marked down by limit-declines of 3.00 cents at 79.73 and 81.92 cents per lb, with foreign brokers predicting further fall in the coming weeks.

Brokers said the lower world prices make the spinners competitive and they opt for the foreign stuff to make up the local crop shortfall, which in turn affect the local prices because of falling mill demand.

They said the current halt in the sustained market run-up for the last about two months is essentially attributed to change in the world market prices and their likely impact on the local markets.

Meanwhile, reports coming from the major growing areas indicate that the growers have again resumed delivery of phutti to the ginners around Rs1,400 to Rs1,450 followed by predictions that the “best is already over”.

Moreover, holding on to the unsold stock of phutti beyond certain period after picking also damages its quality and ginners pay lower prices for such stuff, market sources said.

Official spot rates were, therefore, firmly held at the overnight level of Rs3,400 per maund, although most of the deals were done above this rates.

Ready business was active as about 20,000 bales changed hands as under: 2,400 bales, Bahawalpur at Rs3,500, 600 bales, Rajanpur, 1,000 bales, each Lodhran and Jahania, 1,000 bales Sahiwal and 1,000 bales, Mubarakpur also at this rate, 1,400 bales, Bahawalpur 500 bales, Pir Mahal, 400 bales, Gojra, 600 bales, D.G.Khan, 1,200 bales, Jahania, 400 bales, Muridwala, at Rs3,400 to Rs3,450.