KARACHI, Sept 24: Trading on the cotton market on Wednesday resumed on a higher note as some of the deals were reported as higher as Rs4,050 per maund, but later on prices eased owing to steep fall in New York cotton futures.

Floor brokers said the local market was steadily heating up owing to delivery problems amid higher freight charges being demanded by cargo haulers ahead of Eidul Fitr, however, bearish reports from the world cotton markets notably New York Cotton Exchange halted the early run-up.

The New York cotton futures again fell below the benchmark price of 60-cent per lb on speculative selling triggered by the current turmoil on the US markets and was last quoted at 59.34 cents per lb, off 2.23 cents, while forward December was down by 2.09 cents at 62.30 cents per lb.

Cotton markets world over are generally follow the trend on the New York cotton futures which are guided by its own supply and crop factors, leading brokers said.

However, the this time local market showed a snap reaction to the New York cotton futures as lint from Punjab was traded well below the chart level of Rs4,000 at Rs3,975 per maund.

Analysts said prices could ease further lower as spinners and mills were expected to stay on the sidelines owing to a long weekend ahead and prefer to resume normal trading after Eid.

Moreover, any further fall in world cotton rates could make imports more competitive and a section of mills could opt for imports at cheaper rates, they said.

However, some of the leading spinners were already probing the world markets as the local crop is expected to fall well below the target of 14m bales and imports have to be made to fill in the local supply gap.

There was no change in the official spot rates, which were firmly held at the overnight level of Rs3,975 per maund.

Ready business was relatively slow owing to fall in mill demand and amounted to about 20,000 bales as under:

SINDH TYPE: 2,000 bales, Shahdadpur and 1,600 bales, Tando Adam at Rs4,000 to Rs4,050, 1,000 bales, Mirpurkhas at Rs3,975 to Rs3,990, 1,000 bales, Nawabshah, 800, each Hala and Sanghar, 400 bales each Hyderabad and Moro at Rs4,025 and 400 bales, Sultanabad at Rs4,000.

PUNJAB VARIETY: 1,000 bales, Chistian and 1,200 bales, Hasilpur at Rs3,975 to Rs4,000, 800 bales, Arif Wala, 1,200 bales, Pak Pattan, 400 bales, Gaggon, 600 bales, D.G. Khan, 400 bales, Layyah and 600 bales, Faqirwali at Rs3,975 and 400 bales, Khanewal at Rs3,995.