KARACHI, Jan 12: Physical activity on the cotton market on Wednesday modestly picked up as spinners and mills resumed their forward covering purchases at the higher prices.

Some big-lot business in fine varieties was also reported as leading spinners tried to grab the floating stock amid fears of further increase in prices, dealers said.

Although prices did not touch the high mark of Rs2,200 per maund, the prices tended to go further higher despite delivery problems because of increase in freight rates, they said.

In pre-eid trading sessions, cargo haulers generally raise their fares in line with those they are charging from the upcountry traders who are transporting their sacrificial animals well in time, brokers said.

They said spinners and mills generally try to keep their daily intake in a low key as it is not that easy to get supplies from the ginners well in time. But the interesting feature is that prices did not fall from the current levels as they generally do in a falling ready demand, some others said adding "unlike the previous seasons, ginners are showing a remarkable holding capacity, apparently to hold the price line around the current levels."

Mills and spinners on the other hand were in no mood to keep to the sidelines and continued to lift good quality lint between Rs2,100 and Rs2,175 per maund. Official spot rates were, therefore, further raised by Rs25 at Rs2,100 per maund, although most of the deals were done well above them, depending on the quality.

But New York cotton futures on the other hand failed to hold on to the overnight gains and fell by 1.04 and 0.89 cents per lb for both the ruling March and the distant May settlement at 46.20 and 47.24 cents respectively. Ready off-take was relatively large at 20,000 bales, the following being some of the notable deals.

SINDH VARIETY: 4,000 bales, upper Sindh at Rs2,125 to Rs2,175, 800 and 1,200 bales, Sanghar and Shahdadpur at Rs1,850 to Rs1,900.