KARACHI, Dec 16: Fairly brisk trading was again witnessed on the cotton market on Saturday as leading spinners and mills were virtually out to grab the unsold lots lying with ginners.

Leading ginners, whose holding capacity is fairly strong, appear to be reluctant sellers on the perception that prices are expected to rise further from the current levels, floor brokers said.

“The panic mill buying is reflective of the fact that they have a fair idea of the crop size and are not inclined to take even a calculated risk despite the fact that news from the world textile front are not that encouraging,” they said.

The other supporting factor behind the strong mill demand was approaching Eid holidays and fresh increase in freight rates as leading cargo haulers are busy in transporting sacrificial animals to the cities at much higher rates, they added.

However, it goes to the credit leading spinners who are keeping prices within the current levels for the last couple of week despite holding back of stocks by some of the leading ginners.While fine lots from the southern Punjab ginneries were traded at a uniform rate of Rs2,600 per maund, a big lot of 8,000 bales from the Upper Sindh ginneries, known for fine quality was traded at Rs2,625 per maund.

Market sources said the arrival figures of phutti for the fortnight ended December 15, is expected to set the future market trend in the post-Eid holiday trading sessions.

Meanwhile, reports reaching from the textile sector indicate that leading among them prefer to buy local lint at the current prices rather than opting for imported stuff, which is a bit expensive around 55 cents per lb.

Official spot rates were again firmly held at the overnight level of Rs2.550 per maund, well below those at which physical business is done.

New York cotton futures on the other hand posted modest fall of 0.22 and 0.17 cents at 54.96 and 55.92 cents per lb for both the ruling March and the forward May settlements, respectively.

Mills ready off-take was on the higher side totalling 20,000 bales as under:

SINDH VARIETY: 8,000 bales, Upper Sindh at Rs2,600 to 2,625 and 200 bales, Sultanabad at 2,485.