KARACHI, Aug 1: Physical activity on the cotton market slowed down on Friday as leading spinners and mills curtailed their daily ready intake apparently to have an overview of the supply position.

But unlike the overnight session, instances of panic buying were wanting as some of the leading buyers were not inclined to bid above an average rate of Rs4,200 for fine lots having better staple length, floor brokers said.

As a result, some of the ginners lowered their asking prices by Rs50 per maund to Rs4,150 and spinners said they are not inclined to go beyond their export parity level for textiles.

However, spinners are certainly worried over the supply position owing to report of pest attack in some of the major cotton growing areas but vowed to play safe in future until the picking operations of phutti in the upper Sindh and southern Punjab cotton belts are resumed, market sources said.

“The talk of forward foreign sales at this time of the season appears to be irrelevant viewed in the backdrop of falling New York cotton futures prices,” said a leading spinner, adding: “The US lint is now cheaper as compared to ours and if the Indians are having a short crop they will opt for the fine lint from the US exporters.”

Moreover, some of the leading private sector exporters are selling their stocks of lint to the local spinners around Rs4,250 per maund, which they claim is more than a competitive rate as compared to foreign ready quotes, he said. In a free cotton trade, no one is worried over the talk of forward sales to India as the reported quantity is too small to influence the local price outlook, some others said adding the real threat is a short crop.

Official spot rates were again upped by Rs50 per maund in line with Thursday’s spot prices based on quality premiums.

New York cotton futures, on the other hand, suffered fresh modest fall of 0.25 and 0.18 cents per lb at 71.65 and 74.50 cents for both the ruling October and the forward December contracts, respectively.

The following are some of the deals, which gone through late on Friday evening. Unlike the previous sessions bulk of it went to the credit of Sindh variety.

SINDH VARIETY: 1,400 bales, Shahdadpur at Rs4,175 to Rs4,200, 400 bales, Sanghar at 4,150 to 4,200, 200 bales, Tando Adam at 4,190, and 200 bales, Hyderabad at 4,190.

PUNJAB TYPE: 800 bales, each Bahawalnagar and Burewala and 200 bales, Tandilawala at Rs4,200, 600 bales, Pak Pattan at 4,150 to 4,200 and 400 bales, Sahiwal at 4,150.