KARACHI, Dec 5: After several hectic trading weeks during the previous week, the cotton market on Monday reopened on a relatively dull note as buyers and sellers adhered to the sidelines apparently having an overview of the latest arrival figures. The current figures have reduced the arrival gap from the previous over 20 to 13 per cent and they could well mean anything for the both in the coming weeks, brokers said.

The earlier talk of late picking in some of the areas in the Punjab cotton belt owing to untimely rain has reinforced the perception that the crop may not be that short as growers are flooding ginneries with fresh picked phutti.

The next fortnightly arrival figures, if they maintained a progressive rise, could demonstrate that the revised target of 12.5m bales from the initial 15m bales may not be that ambitious and could be attained with a modest surplus, some ginners believe.

The spinners took a breather apparently having a fresh review of the supply position thinking that the crop shortfall may not be that big as being speculated by many analysts.

The spinners and mills kept out of the market awaiting further developments on the price front and ginners’ reaction to the changed supply and demand scenario, they added. The ginners were also reluctant sellers at the lower asking price and held on to their unsold stocks anticipating further increase in prices in the coming weeks.

According to market sources, the ginners anticipated further increase in prices early next year as supplies might not match the demand as consumption is expected to show four per cent rise owing to a robust demand for textiles the world over, they said.

Meanwhile, China continued to dominate the world export of textiles, showing an increase of 50 per cent despite some punitive steps taken by western countries to limit its exports.

The Chinese textile export drive has affected local sales, notably in the EU owing to alleged dumping of some type of textiles, while China has bridged the supply gap, the market sources said.

Official spot rates did not show any change and were firmly held at the weekend levels amid dull trading.

The post-arrival trading showed a lull on the ready front as barring a few lots in the Punjab type, the mill ready offtake remained at low ebb.