KARACHI, March 28: Firm trading conditions were again witnessed on the cotton market on Monday as spinners and mills were not inclined to take even a technical breather amid reports of falling unsold stocks with the ginners. Moreover the current selling prices are said to be attractive enough for the end-users as they are in line with their export parity level for finished goods including cotton yarn, brokers said.

Most of the deals, mostly of fine lint were finalized on an average rate of Rs2,350 per maund but unconfirmed reports said some forward deals were done around Rs2,400.

Floor brokers said the current spinners’ panic-buying including some big-lot deals reflected that they were out to grab the floating stock lying with the ginners, which said to be not more than 0.4m bales.

Indications are that a price war between the spinners and the mills has already started to corner the floating stocks irrespective of the asking prices, which could benefit those ginners who still hold stray unsold stocks, they said.

Market sources said the heating up of the market well before the final crop figure to be released by the Pakistan Cotton Ginners Association (PCGA), in the first week of the next month shows that spinners and mills have already a fair idea of unsold stocks with the ginners.

Leading spinners said they were not inclined to go for fresh supplies from the world market and would think about it after having purchased the entire local stuff of fine lots.

Meanwhile, reports originating from the textile sources said that they were not inclined to get default on the export front in the maiden year of post-WTO regime and intend to maintain their shipment deadlines irrespective of the costs involved.

According to them, both the spinning and textile sector have sufficient export orders for the last quarter of the current year ending June 30, and so is the ancillary industry.

As a result, official spot rates did not show any change and were firmly held at the last levels owing to firm trend in physical dealings.

Ready off-take was modest totalling 15,000 bales, the following being some of the notable deals: 4,000 bales, Gothki, Dharki, Mirpur Mathelo and Pano Aqil, at Rs2,300 to Rs2,350, 2,500 bales, Rahimyar Khan at Rs2,300 to Rs2,350, 2,000 bales, Sadiqabad at Rs2,215 to Rs2,350, 200 bales, Multan at Rs2,300 and 200 bales, Alipur also at this rate.