KARACHI, Oct 18: The cotton market on Saturday resisted fresh fall as prices recovered from the overnight lower levels by Rs50 per maund partly in sympathy with strong rebound staged by the world markets.

Spinners and mills remained active buyers despite turmoil on the textile export markets owing to the prevailing financial crisis in the major developed economies.

“Pakistan’s textile exports to EU countries alone are around $3.5 billion and spinners are worried over the financial crisis there as it could hit the local textile industry, if it persists for a long period,” fears a leading spinner.

Already the falling value of the rupee, they said, is working against the export interests of the major industries and its further weakening will inflate the import bill, they said.

Fresh limit-gain of three cents per lb in both the New York cotton futures had sent bullish signals elsewhere and local cotton analysts said the market could rebound from the Friday’s lows if the current run-up on the world markets was sustained in the coming sessions also.

The New York cotton futures rose by three cents per lb at 52.57 and 56.39 cents per lb for both the ruling December and the forward March contracts respectively.

Although unlike the previous session, ready business was on the lower side of the daily average as ginners were not inclined to sell at the falling prices which showed modest recovery late in the evening trading and bulk of the business was done between Rs3,300 to Rs3,350, while some fine lots from the Punjab cotton belt were sold at Rs3,400.

Meanwhile, spinners and mills remained active importers of lint from various sources amid fear of a short local crop and despite the prevailing recession in the major importing countries.

According to official figures, mills had imported about 0.2m bales of lint from various foreign sources during September against foreign contracts of over 2m bales.

Official spot rates were, therefore, firmly held at the last level of Rs3,375 per maund amid active ready business.

The following are some of the notable deals reported in the ready section.

SINDH TYPE: 2,600 bales, Tando Adam at Rs3,250 to Rs3,350, 1,000 bales, Shadadpur at Rs3,300 to Rs3,350, 1,000 bales, each Mirpurkhas and Nawabshah at Rs3,250 to Rs3,300 and 400 bales, each Khipro and Mirpurkhas at Rs3,300.

PUNJAB VARIETY: 400 bales, Rahimyar Khan at Rs3,400, 1,200 and 1,000 bales, Khanewal and Burewala at Rs3,300 to Rs3,350, 1,200 bales, Bahawalnagar at Rs3,275 to Rs3,325, 800 bales, Arifwala at Rs3,325, 200 bales each Fazalpur, Jalalpur, Layyah, Mailsi, Dyniyapur and 400 bales, each Garma Raja and D.G. Khan at Rs3,300 to Rs3,350.