KARACHI, Oct 14: Cotton market on Tuesday resisted fresh decline as prices recouped a good part of the overnight losses on active mill support amid an actively traded session for the second day in a row.

In physical trading, most of the deals were finalised at an average rate of Rs3,425, while some of the quality lots were traded higher at Rs3,500 per maund, floor brokers said.

They said the recovery in part was attributed to a rebound staged by the New York cotton futures and partly to higher phutti prices and in turn that of lint.

The rebound in New York cotton futures was linked to all round recoveries staged by the US and European financial and capital markets after a massive rescue package of $700 billion made its presence felt, boosting the badly shattered investor morale, market sources said.

While Sindh lint was again traded in big-lot deals, its Punjab counterpart though dominated the trading but most of the deals were of retail nature mainly below 1,000 bales, they added.

“The market may not literally follow the recovery on the world commodity markets in the coming weeks and is expected to be guided by mostly the local supply and demand factors,” said a spinner.

But much of its future direction will be guided by export performance of the textile sector, which is currently under pressure owing to financial crisis in its major trading countries, including the US and the European outlets, he added.

Official spot rates were quoted higher by Rs50 per maund at Rs3,450 but fine lots in the ready section were traded at the higher rates.

After having fallen below its benchmark of 50 cents, the ruling December cotton future was quoted higher by 0.78 cents at 50.22 and the forward March at 54.61, up by 0.74 cents.

The following are some of the deals gone through in the ready section late on Tuesday evening:

SINDH TYPE: 2,000 and 1,000 bales, Nawabshah and Tando Adam at Rs3,400, 1,200 bales, Shahdapur at 3,375 to 3,425, 1,000 bales, Sanghar at 3,350 to 3,400, and 400 bales, Mirpurkhas at 3,375.

PUNJAB VARIETY: 200 bales, Mian Channu at Rs3,500, 1,000 bales, Khanewal at Rs3,450 to 3,475, 400 bales, Fort Abbas, Rs3,475, 600 bales, Bahawalnagar at Rs3,400 to 3,460, 400 bales, each Haroonabad and Rajanpur and 200 bales, Bahawalpur at Rs3,450, 200 bales, Faqirwali at Rs3,440, 200 bales, Mian Channu at Rs3,425, 400 bales, each Mong Bangalow, Chichawatni, 200 bales, Muridwala, 600 bales, Gojra, 200 bales, each Pak Pattan, and Kassowal at Rs3,425, 1,000 bales, Burewala at Rs3,400 to 3,425, 1,000 bales, D.G. Khan at Rs3,400 and 200 bales, Yazman at Rs3,390.