KARACHI, Jan 23: Trading on the cotton market on Monday resumed on a steady note but physical business remained at a low level as spinners curtailed their ready off-take owing to higher asking prices.

However, there were no instances of panic mill buying as witnessed during the last week as most of the spinners played safe and lifted only those lots, which conformed to their export parity levels, brokers said.

Some of the big spinner groups were not inclined to take even a technical breather and remained active buyers of fine lots both from the upper Sindh and southern Punjab ginners.

Most of the deals were, however, finalized well above Rs2,500 per maund, the highest being Rs2,535 for fine lots, while inferior lots were sold below this level.

“There was a loud whispering in the market late in the evening that some of the leading textile groups, having firm export orders were buyers around Rs2,600 per maund on spot delivery”, brokers said.

Opinions are divided over the future price outlook. Some brokers said that as the supply position would continue to be tight during the coming weeks prices could rise further.

But some others said that future price trend would be guided by the international market, notably of New York cotton futures, which already heading towards the 60-cent per lb benchmark.

New York cotton futures were currently ruling around 56 cents per lb for both the March and May contracts

and could rise to this record level after China, one of the major consumers re-entered the world market, some others said.

Spinners were worried over the falling demand of yarn and lower prices, which in turn may slow down their ready off-take in the coming weeks as piling stocks had created liquidity problem for them.

Official spot rates were, therefore, held unchanged at Rs2,500 per maund but in the ready section stray lots changed hand above them.

Ready off-take was modest totalling 7,000 bales as under: 400 bales, upper Sindh at Rs2,525, 3,000 bales, Sadiqabad at Rs2,475 to Rs2,550, 1,000 bales, Rahimyar Khan at Rs2,500 to Rs2,525 and 400 and 200 bales, Rajanpur and Khanewal at Rs2,535.