KARACHI, Nov 28: Cotton prices on Monday remained stable around the weekend level as ginners held on to their unsold positions and did not indulge in hasty selling. The ginners are worried over the large unsold stocks lying with their godowns in the absence of strong mill demand, but like the previous sessions they decided to keep to the sidelines awaiting further developments on the export front, brokers said.

Bulk of the business in the ready section was reported below the Rs2,400 per maund level but remained modestly higher than the average official rates amid falling ready turnover.

Floor brokers said owing to year-end considerations, the export of cotton yarn is on the lower side for most of the traditional foreign buyers, limiting their spinners’ ready offtake.

“The production glut of cotton yarn and cloth has curtailed mill ready offtake, which ginners fear, could lead to a further fall in prices in the coming weeks,” they said.

“A crisis-like situation may not be developing in the cotton trade, but most of the leading operators associated with the cotton trade are worried over the developing situation both on local and foreign selling outlets,” some others said.

Leading growers who are still holding on to their stocks of phutti appear to be in a happy position in the backdrop of market talk of a short crop as compared to the previous season, they added.

Phutti rates are ruling at Rs1,100 or slightly above, which ginners claim, are on the higher side as compared to current selling prices of lint at which the spinners are buyers, they said.

It was in this background that official spot rates were firmly held at the weekend levels but analysts fear a further fall if mill demand did not pick.

Ready offtake was modest totalling about 10,000 bales, the following being some of the notable deals:

SINDH VARIETY: 400 bales, Tando Adam at Rs2,275; 200 bales, Kandiaro at Rs2,350; and 400 bales, Dadu at Rs2,375.