KARACHI, Dec 12: Physical business on the cotton market remained light after trading resumed on Monday as spinners and mills were reluctant to oblige ginners at higher asking prices.

Ginners entertaining higher price ideas in the coming sessions also appear to be in no hurry and held on to their unsold positions on the perception that a short crop could push prices further higher during the next year, brokers said.

“The status quo prevailed as both the sellers and buyers adhered to the sidelines waiting blinking from the other side, which could lead to gainful bargains,” they said.

A couple of lots did change hands but mostly at higher ginner asking prices as no one among them is now worried over the larger unsold stocks lying with their ginneries.

According to unofficial sources, the ginners still held an unsold stock of well over 2m bales involving Rs25 billion, but there was no signs among any one of them to indulge in hasty selling to meet bank demands on the settlement of overdraft limits for the year ending Dec 31, 2005.

“The developing situation on the cotton front reflects that the spinners may remain at a disadvantage on the price front, leading to some problems on the export front,” market sources said.

But some others said the market’s future trend would be guided by the fortnightly arrival figures due on Dec 15, which will give a clear idea of the supply and demand front.

Picking operations of phutti in most areas of the cotton belt are completed and some of the leading growers are preparing fields for sowing wheat after having harvested cotton, ginners said.

Meanwhile, reports coming from the yarn market indicate prices are picking up from the previous lower level as end-product users have resumed their year-end buying to cover forward export positions.

Official spot rates were further revised upward by Rs15 per maund but in ready section some of the deals were done well above them.

Mill buying in the ready section was light as the spinners awaited the arrival figures for the current fortnight and higher asking prices by the ginners.

About 5,000 bales, mostly from the Punjab ginneries, changed hands on an average rate of Rs2,400 or slightly below per maund depending on the quality.