KARACHI, July 26: Physical activity on the cotton market slowed down on Saturday despite lower offerings by the ginners as spinners anticipated further fall in prices.

In the ready section, some of the deals were finalised as lower as Rs4,000 per maund, a fall of Rs250 from the record high, but spinners lifted only those lots which were in conformity of their export parity levels.

Market sources said fresh forward sales of cotton to India, Bangladesh and Indonesia during the week did not spur prices on the higher side.

The private sector exporters have so far made forward deals for 50,000 bales including 30,000 bales to India despite demand of ban on export by the textile sector, they said.

Under the trade policy and WTO regime duty-free export and import of lint is allowed by the respective governments, they said.

“It appears to be a tactical mill withdrawal from the spot market,” said a broker. “Steady fall in the arrivals of phutti during the last two days and ready fixation of phutti at the lower rates may be some of the immediate bearish reasons, which caused the price decline,” he added.

However, the falling phutti arrivals do not necessarily reflect a decline in the crop projections but snap maneuvering by the market players to keep the price balance in their respectively favour, he added.

The Punjab crop arrives in the market a bit early unlike the previous seasons and that is perhaps why it is readily picked up by spinners at record high prices amid rumours of pest attack, he said.

Floor brokers said erratic price movements would be witnessed in coming weeks owing to rumours about the size of the new crop and the damage caused to it by mealy bug pest.

There was no change in the official spot rates for the second session in a row and quoted at Rs3,900 per maund.

But New York cotton futures on the other hand rose further by 0.64 cents per lb each for both the ruling October and the forward December contracts at 71.68 and 74.50 cents, respectively.

Mills ready off-take was on the lower side as compared to last couple of sessions totaling 5,000 bales as under: 400 bales, Shahdadpur at Rs4,100, 1,000 bales, Bahawalnagar at Rs4,100 to Rs4,125, 200 bales, Mian Channu at Rs4,125, 600 bales, Burewala at Rs4,100 to Rs4,150, 400 bales, Haroonabad at Rs4,050, 145 bales, Gaggon at Rs4,100, 200 bales, Gojra Rs4,150 and 800 bales, Pak Pattan at Rs4,000.