KARACHI, Feb 13: Cotton market on Friday resisted fresh decline after spinners resumed their covering operations but most of the deals were reported at the higher levels as ginners did not lower asking prices.

The sentiment in part was also influenced favourably by reports of rebound staged by New York cotton futures on strong speculative short-covering. Both the maturing March and the forward May settlements were quoted higher by 1.48 and 1.72 cents per lb at 65.42 and 68.86, respectively.

"World cotton prices may remain volatile for the next couple of sessions as the markets are in the tight grip of speculative forces who could play on both sides of the fence," local brokers said.

However, one thing appears certain that the ginners have outwitted the bearish forces and held on to their positions rather than selling in a panic in line with New York cotton futures, they added. Indications are that New York cotton futures may further recover from the current lows in the sessions to come based on world supply and demand factors.

"Both China and India are on the world markets with a big shopping list and speculative forces could cash in on this positive development in the coming weeks," analysts said, adding "Pakistani spinners may follow suit as the possibility of decline in local prices appears to be remote."

The resumption of buying by the spinners from the local market reflects that the spinners have now a fair idea of future price situation and are not inclined to take further risks, they said.

There are unconfirmed reports that some of the leading ginners have made forward deals for April-May shipments around 65 cents per lb after the recent crash of New York cotton futures to 64 cents per lb.

As a result, spinners and mills were obliged to resume their covering operations at the prices named by the ginners rather than the external factors. Fine varieties both from the upper Sindh and southern Punjab cotton belts changed hands between Rs3,240 to Rs3,300 per maund depending on the quality of lint involved in trading.

There was, therefore, no change in the official spot rates, although some of the deals done in the ready section were above them.

Ready business was active as till late in the evening about 20,000 bales changed hands, the following being some of the notable deals: 8,000 bales from upper Sindh ginneries at Rs3,240 to Rs3,300 and 4,000 bales, at Rs3,250; 200 bales, Sanghar at Rs2,750; 1,000 bales, each, Rahimyar Khan and Khanpur at Rs3,300; and 800 bales, Sadiqabad low-mic at Rs2,725.