KARACHI, Sept 11: Trading activity on the cotton market remained light as spinners were not inclined to bid above their export parity levels and lifted selected quality lots.

Some of the leading ginners from the central cotton belt entertaining higher price ideas on analysts’ predictions held on to their long positions and did not opt for panic selling as they have doing for the last couple of sessions.

Analysts said steep increase in New York cotton futures after several lean weeks to 60 cents per lb level on strong speculative support fuelled by reports of higher consumption estimates by the importing countries could influence the world cotton trade in the other countries also.

“The rise above the barrier of 60 cents could cause sympathetic increase in local prices in the sessions to come as spinners will try to cover positions by the local stuff rather than of imports”, they said adding “imports of lint from now onward may be more expensive”.

The New York cotton futures on Wednesday soared by limit-gain of 2.52 and 2.51 cents at 60.70 and 62.52 cents per lb for both the ruling October and the December settlements followed by reports of damage to crop in some countries and higher consumption projections by the world textile industry.

In response to higher world prices, trading on the cotton market also resumed on a higher note at Rs2,425 per maund but as the arrivals of phutti gathered momentum, prices eased to Rs2,375.

But the mid-session again saw prices rising to the opening levels as mill demand picked up and some of the leading spinners tried to grab the floating stocks around these levels.

Spinners are worried over the sudden change in the world price outlook and how will they manage their forward export commitments for the next quarter ending Dec 31, 2003 at the rising local prices and expensive imports is a question being debated in the local textile circles, brokers said.

They said spinners and mills may have to revise their future price perceptions in the backdrop of the price flare-up in the New York cotton futures and its likely impact on the local market.

It was perhaps in this background that the official spot rates were not revised and were quoted at the previous levels.

Ready business remained light as till late in the evening about 4,000 bales changed hands as under:

SINDH TYPE: 1,700 bales, Shahdadpur at Rs2,425, 200 bales, at Rs2,400 and 200 bales at Rs2,375, 500 bales, Tando Adam at Rs2,420, 200 bales, Nayabad at Rs2,375 and 200 bales, Maqsooda at Rs2,425.