KARACHI, Oct 21: Active trading was witnessed on the cotton market on Tuesday as spinners and mills lifted all the lots offered by the ginners for sale around the ruling prices.

Another about 30,000 bales, including some big lots, changed hands at an average rate of Rs3,400 per maund, bulk of which was from Punjab.

“As the New York cotton futures is showing highly erratic price movements since the current financial crisis gripped the US commodity markets and steep decline in the rupee value, foreign cotton trade is both export and import is terribly unsettled,” spinners said.

An idea of the highly volatile New York cotton futures market may well be had from the fact that it fell and rose with limit-gain after each alternate day because of the prevailing financial crisis, they said, adding that this made imports literally impossible owing to price differentials.

Both the ruling December and the forward March contracts on Monday fell by limit fall of 3.51 and 4.00 cents per lb at 49.06 and 52.39 cents respectively after last couple of sessions’ sustained run-up.

As a result, spinners and mills are relying on the local supplies, which is well-reflected in the daily large mill off-take, they added.

However, the local prices remained steady around the overnight levels despite hectic mill buying, market sources said.

Official spot rates were firmly held at the last close of Rs3,375 per maund.

The following some notable deals were reported in the ready section on Tuesday evening.

SINDH TYPE: 1,200, 1,600 and 400 bales, Shahdadpur, Tando Adam and Hyderabad at Rs3,400, 1,400 bales, Sanghar at Rs3,375 to Rs3,400, 1,000 bales, Mirpurkhas at Rs3,350 to Rs3,375, 2,000 bales, Khairpur at Rs3,365 to Rs3,375 and 400 bales, each Dadu and Khipro at Rs3,365 and Rs3,370.

PUNJAB VARIRTY: 2,400 bales, Rajanpur at Rs3,450, 2,000 bales, Khanewal at Rs3,400 to Rs3,450, 1,000 bales, Bahawalnagar, at Rs3,365 to Rs3,375, 200, 400, 800, 400, 400, 600, bales, Fazilpur, Arifwala, Renala Khurd, Lodhran, Layyah and Ahmedpur East at Rs3,400, 1,000 and 1,400 bales, Yazman and Vehari at Rs3,375 and 3,000 bales, Bahawalpur at Rs3,400.