KARACHI, Jan 8: Cotton market on Tuesday showed easy trend as ginners indulged in panic selling in the absence of positive signals from the textile export front but spinners lifted all the lots offered below Rs1,800 per maund.

However, the notable feature was that some leading private sector entered the market and purchased about 4,000 bales between Rs1,325 on the lower side and Rs1,615 on the higher side. But as expected their entry did not push prices higher from the current lows.

“With war fears still hovering on the Indo-Pak horizon, foreign textile importers are awaiting some positive developments on the peace front to open fresh letters of credit,” says a floor broker.

But tired ginners are faced with the twin-problem of cost-push after having purchased phutti at the higher rates and falling mill demand and added to them are bank demands, which add to overheads each day, he says.

It was perhaps in this background that the rate committee of Karachi Cotton Association (KCA) on Tuesday further lowered the official spot rates below Rs1,800 per maund, while in physical trading prices eased further.

Despite the prevailing sluggishness, spinners predict a pickup in cotton trade during the next couple of weeks as by that time foreign buyers of textiles will finalize their year’s needs and are expected to place fresh orders.

“But price outlook may remain uncertain as the prevailing recession in the world textile market has lowered the demand for lint and added to it is larger blending of synthetic fibre to produce blended fabrics,” says a leading spinner.

Moreover, reports of a higher cotton crop of 35m bales in China has changed the world cotton outlook as users are not that keen to build up long positions, anticipating further decline in rates in coming weeks, he adds.

The prevailing uncertainty in the market is the outcome of negative news from the world cotton trading centres and fears of oversupply as most of the major producers have harvested good crops.

Ready offtake was active as till late in the evening about 10,000 bales changed hands as under:

SINDH TYPE: 2,600 bales of Sanghar at Rs1,615, purchased by an exporter, 200 bales each from Sakrand and Naushero Feroze at Rs1,675, 500 bales, Bucheri at Rs1,650, 600 bales, Bhiria at Rs1,725, and 500 bales of Moro at Rs1,700.