KARACHI, Feb 14: Trading on the cotton market on Monday resumed on a firm note but physical business remained light as price ideas of buyers and sellers failed to find a meeting ground.

Ginners have, according to market sources, raised their asking prices to Rs2,250 to Rs2,300 per maund for fine lots but spinners and mills were reluctant to go beyond Rs2,200 for the near-term. Unconfirmed reports say some deals were finalized around Rs2,250 per maund for the fine lots from the southern Punjab cotton belt, notably contamination-free areas.

Although there were no reports of fresh rain in the entire cotton belt for the last couple of days, ginners did not make deliveries against the already signed deals with the Karachi-based buyers for fears of rain.

The price war between ginners and spinners continues but it is not clear when the standoff ends as ginners appear to be in a commanding position and in unison could force spinners and mills to oblige them, they said.

The recent rain spell in the major cotton growing areas may not have damaged the quality of lint but rumours are afloat that in some of the ginneries where the ginned bales were lying on the open plinths may have been modestly damaged. However, spinners will not go for fine lots still lying with the ginners of upper Sindh and southern Punjab, as they appeared to be in no obliging mood, brokers said.

Those spinners and mills who have secured export orders from the current quarter ending March 31, 2005, have a little breathing space and may raise their prices in line with those of ginners.

Meanwhile, ready off-take could be the chief casualty as spinners were expected to lift only those lots, which conform to their export parity levels as well as standards, they said.

Official spot rates were, therefore, firmly held around Rs2,150 for average quality lint but fine lots continue to fetch higher price. Ready off-take was light totalling about 4,000 bales, the following being notable among them: 1,000 bales, Khanpur at Rs2,200 and 1,400 bales also at this rate. Some inferior lots from the central Sindh ginneries changed hands around Rs2,050.