KARACHI, May 30: Forward deals in new crop Sindh variety highlighted the trading on the cotton market on Wednesday as spinners resumed their normal covering operations.

While previously signed forward deals stipulated physical delivery by the middle of August, ginners from Sanghar sold 200 bales at Rs2,500 per maund for delivery between July 15-20, brokers said.

The delivery on new crop lint by the middle of July could well mean that picking operations of phutti were expected to be resumed by the end of June enabling ginners to resume their operations by early July, they added.

“But we don’t think modest arrivals of new crop from the lower Sindh ginneries could have negative impact on the prevailing prices,” said a leading spinner, adding “last year’s short crop will continue to have positive impact on the local prices”.

However, the future price outlook would largely depend on the size of the new crop and any damage to standing crop in mid-season could keep prices on the higher side, they added.

Meanwhile, spinners hoped that steep fall in New York cotton futures on Tuesday could have a negative bearing on the prevailing prices elsewhere including India making imports more competitive.

New York cotton futures fell by 1.11 and 0.80 cents per lb for ruling July and the new crop October settlements to close at 50.03 and 53.70 cents respectively.

Some of the leading spinners needing fresh supplies and are probing the world markets for cheaper lint have asked their agents to keep out of the market for the next couple of days eyeing fresh fall in future prices, market sources said.

Official spot rates on the other hand were firmly held at the last level of Rs2,650, although some deals were done well above them.

The following were some notable deals changed hands on Wednesday evening:

NEW CROP: 400 bales and 200 bales, Sanghar for delivery in the middle of July and August respectively at Rs2,500 and 154 bales, low-mic current crop, Shahdadpur at Rs2,000 and 600 bales, exporter-to-mill at Rs2,600.