KARACHI, Aug 6: Physical activity on the cotton market on Saturday showed signs of revival as a couple of new crop lots from the lower Sindh cotton belt changed hands slightly above the official spot rates. But leading brokers said details of stray deals reportedly finalized in the central Punjab new crop lint were not immediately available, although the general perception was that they may be in line with the local ones.

The central Punjab ginneries also resume operations a bit early partly based on Sindh phutti and partly to new crop from their surrounding areas. Some of the deals in lower Sindh new crop were reported around Rs2,350 per maund which said to be on the lower side of the ginner thinking who were entertaining higher price ideas well above Rs2,400 per maund, market sources said.

They said that based on the phutti rates around Rs1,100 per 40 kg, the current lint rates were claimed to be competitive for the ginners.

“Weak New York cotton futures and not very enthusiastic spinner response to the recent TCP auctions was said to be the chief reason behind the lower new crop prices,” they said.

However, ginners are not inclined to await further increase in prices and were selling the newly ginned lint at the market prices as spinners demand may remain subdued for the coming weeks also, they said.

Meanwhile, reports coming from the lower Sindh cotton belt showed that phutti picking operations had been resumed and arrivals into the ginneries were improving each day.

Official spot rates for the current crop were held unchanged at Rs2,350 per maund in the absence of ready business, while new crop prices were quoted higher by Rs25-35 per maund as compared to old crop.

New York cotton futures on the other hand were marked down by 0.80 and 0.64 cents at 49.80 and 51.73 cents per lb for both the ruling October and the forward December settlements respectively.

Ready off-take in new crop was light totalling 300 bales as under: 100 bales, Kot Ghulam Muhammad at Rs2,350, 100 bales, each Mirpurkhas at Rs2,350 and Rs2,360 per maund respectively.