KARACHI, Dec 20: Physical activity on the cotton market on Tuesday picked up as spinners and mills made active covering purchases at the prevailing levels.

Mill intake was on the higher side as they lifted about 20,000 bales as a section of ginners was apparently discouraged by an anticipated rise in prices after the lowering of phutti arrivals by 0.2m bales, opted for selling at the current rates, brokers said.

They other negative factor which forced ginners to sell was larger unsold stocks lying in their godowns, which they fear could well-prove a double edged weapon in due course.

While fine types were generally traded around Rs2,425 per maund, some of the inferior lots were sold as low as Rs2,350 and Rs2,375 per maund, they said.

“Even the downward revision of unsold stocks at 2.729m bales from the 2.9m bales is considered on the higher side of this time of the season”, market sources said, adding “mills and spinners are playing their cards judiciously not allowing prices to rise above their parity levels”.

No one could dispute the fact that mills are half way of the current season and taking into account higher exports, they still need substantial number of bales to hit their target of 15m bales plus, they said.

According to official figures, mills have purchased 7.436m bales out of the total arrival of 10.219m bales but are playing safe to keep prices within the current levels.

Official spot rates, therefore, remained pegged at the overnight levels but were modestly higher at which ready business was being transacted for the last couple of sessions.

New York cotton futures on the other hand posted modest gains of 0.24 and 0.34 cents at 53.63 and 54.57 cents per lb for both the ruling March and the distant May contracts.

Ready off-take was on the higher side as leading spinner groups continued to build up long positions around the current levels. The following are some of the notable deals.

SINDH TYPE: 3,000 bales of fine type from upper Sindh ginneries at Rs2,425.