KARACHI, Dec 27: Cotton market on Tuesday showed steady trend aided by revival of mills demand at the prevailing rates amid an actively traded session. Although official spot rates were again held unchanged at the previous levels, in physical trading some of the deals, notably, for fine lots were finalized at the uniform rate of Rs2,400 per maund, while some inferior lots were traded around them, dealers said.

According to market sources about 20,000 bales changed hands around these levels, which also include some big lots of 3,000 to 4,000 bales as leading spinners were back in the market fearing further increase in prices.

“Delivery problems are there in the backdrop of higher freight rates, but they choose to go for more supplies and to take delivery during the post-Eid holiday trading,” they said adding “In a way technically they may be called forward deals.”

But some others said fortnight arrival figures for the current year ending Dec 31, are due prior to Eid holidays possibly by the middle of the next week and they could fully reflect future line of action of both the sellers and the buyers, they added.

The current hardening of prices in the ready section shows that ginners and spinners by now fully know the size of the crop and operating in line with their future perceptions about the price outlook, some others said.

With New York cotton futures closed for Easter and new year holidays, the world price trend on which export could be based will not be available for about next week, local selling and buying rates are to be set by the supply and demand factors, says a leading cotton broker.

The current increase in prices on the ready counter appears to be based on local factors, rather than the export parity levels for the textiles in the post-Eid holiday trading week, he added.

Official spot rates were again held unchanged as they conform to physical trading after adding to them the overhead costs.

Unlike the previous couple of sessions, ready off-take was active, all confined to Punjab ginneries, the following being some of the notable deals: 4,000,2000,3,000 and 600 bales, Ahmedpur East, Uch Sharif, Bahawalpur and Yazman were done at Rs2,400.00,1,400 bales, Multan at 2,390 to 2,400.00,2,000 bales, Liaquatpur at 2,380.00,1,000 bales, Mamon Kanjan at 2,270 and 800 bales, Chistian at 2,350.00.