KARACHI, Nov 27: Physical activity on the cotton market shrank to a modest proportion on Thursday as ginners were not inclined to lower their asking prices amid analysts predictions that a rebound is around.

“Limit-gain in the New York cotton futures after several weeks of falling prices, seems to have been well-received by the local ginners,” said a leading cotton analyst, adding “prices could rebound any time from the current lows any session in sympathy with changing world cotton scenario.”

After having breached through the barrier of 40 cents per lb, a couple of weeks earlier, ruling December and forward March contracts were quoted higher by 3.78 and 2.80 cents at 46.15 and 46.55 cents per lb, respectively, he said.

“A price war between the ginners and the spinners may be imminent,” another analyst said, adding “the current price flare-up on the world markets has provided them the needed lever to raise their asking prices.”

He said world cotton markets, including Pakistan, mostly follow the trend set by the New York cotton futures as was reflected by the current weakness as prices had dropped well below Rs3,000 per maund.

“I foresee a big turnaround on the local market,” says a floor broker, adding “the sharp recovery in the world cotton markets is expected to change the local price outlook also.”

The steep fall in the daily mills offtake shows that the ginners were not in an obliging mood and held on to their unsold positions rather than selling at the prevailing prices, he added.

Official spot rates, however, did not show any change and were firmly held at the last levels, although fine types were traded well above them.

Ready business was on the lower side of the daily average, amounting to 12,000 bales, the following being some of the notable deals, mostly from the Punjab cotton belt:

SINDH TYPE: 200 bales, Shahdadpur at Rs2,700 per maund.

PUNJAB VARIETY: 2,000 bales, Rahimyar Khan at Rs2,850 to Rs2,900, 800 bales, Ahmedpur East, 2,000 bales, Bahawalpur, at Rs2,850, 600 bales, Lodhran at Rs2,800, 400 bales, Jehania, at Rs2,700 to Rs2,750, 400 bales, Shujabad, at Rs2,790, 600 and 400 bales, Haroonabad and Fort Abbas, at Rs2,775, 800 bales, Khanewal at Rs2,850 to Rs2,900, 400 bales, each Janpur and Sadiqabad and 800 bales, Liaquatpur at Rs2,900.