KARACHI, Oct 21: Cotton prices on the local cotton market remained stable as both the ginners and spinners again indulged in a battle of wits to tilt the balance in their respective favour.

But for the near-term it appears to be a no-win situation as the market is in the tight grip of speculative forces. They are cleverly selling the idea of lower crop fuelling the current price flare-up, brokers said.

Leading spinners who were a bit shaky some days back are now pretty sure that the crop is short owing to damage caused by a late pest attack in some of the major growing areas of the southern Punjab but not that short, they said.

As a result, during the last two sessions, prices have taken downward course as most of the deals are being finalized between Rs3,150 for the central Sindh variety and between Rs3,375 and Rs3,400 for the Punjab lint depending on the quality of lint in trade.

“The mid-season price flare-up was caused by the panic mill buying,” market sources said. “If the spinners have a little restrain rather than jumping to hasty conclusion about the crop figures, the speculative price flare-up should have been averted.”

Growers who have holding on to their phutti stocks have resumed normal supplies to the ginners after price fall and are claimed to be fixing their stocks between Rs1,475 to Rs1,500 per 40 kg as compared to Rs1,600 and above.

However, for the near-term price outlook appears to be bullish as sellers will try to hold the price line but much will depend on the attitude of spinners, notably those holding short positions.

It was perhaps in this background that official spot rates were firmly held at the last levels, although ginners were sellers below this level late in the evening.

New York cotton futures stayed firm around the previous levels despite a fractional decline of 0.8 and 0.17 cents per lb at 75.44, and 78.15 cents per lb for both the ruling December and the distant March settlements respectively.

Ready offtake was light as till late in the evening a big-lot of 5,000 bales from a Samundri ginnery changed hands Rs3,400. But some sellers offered to sell at Rs3.375 but found no buyer.

The following are some of the deals reported late Monday evening: 200 bales, Bahawalpur at Rs3,475, 400 bales, Chishtian at Rs3,450, 1,000 bales, Faisalabad at Rs3,400 to Rs3,475, 200 bales, Bahawalnagar at Rs3,450, 1,000 bales, Rahimyar Khan at Rs3,435, 1,000 bales, Khanpur at Rs3,475, 500 bales, Sadiqabad at Rs3,450, 200 bales, Yazman at Rs3,450 and 200 bales, Renalakhurd at Rs3,400.