KARACHI, June 24: Cotton market passed through another sluggish trading session as spinners were not inclined to make larger commitments anticipating fall in the ginner asking prices.

But some leading brokers said the centre of activity has shifted to the southern Punjab cotton belt where bulk of the unsold stocks are lying and stray direct deals are being transacted between the ginners and the spinners.

But ginners are worried over the unsold stock of about 0.4m bales and are trying to sell it on an average price of Rs3,050 but were unsure whether spinners would lift it, brokers said.

"The fall of the New York cotton futures for the ruling July contract has altogether changed the world lint price outlook," they said adding "after having purchased phutti around Rs1,400 per 40 kg, ginners are not in a position to lower their selling prices in line with the New York cotton futures."

New York cotton futures on Wednesday finished with an extended fall of 0.45 cents in the ruling July delivery at 47.95 but the forward October delivery managed to close fractionally higher by 0.10 cents at 51.55, indicating that the new crop would be available around these rates.

According to latest world crop estimate, the total production is in excess of 4m bales of the annual consumption at 102m and 98m bales in that order and it was speculated that the larger carryover stocks would have a negative bearing on the prices of the new crop.

The future cotton outlook appears bearish and ginners may not get the desired prices for their unsold stocks. The foreign lint is now cheaper than the local stuff. Meanwhile, conflicting reports about the new crop from the major producing areas are trickling in are not that encouraging despite rain in some of the areas.

The main worry is the shortage of irrigation water, which could have negative impact on natural growth of the newly sown crop. In the absence of large ready offtake, official spot rates were firmly held at the last levels.

Ready offtake was light at 400 bales, from a central Sindh ginnery, which changed hands at Rs2,750 per maund. The lots in trade were of low-mic, brokers said. Some other deals were also finalized but details were not immediately known.