KARACHI, Jan 6: Trading activity on the cotton market failed to pick up as spinners and mills kept to the sidelines most of the time partly to higher asking prices by ginners and partly to delivery problems.

Spinners claim the piling of unsold stocks of cotton yarn and finished textiles has limited their buying capacity and until normalcy returns to physical trading after Eid holidays their presence in the market may remain thin.

The exports of textiles and cotton yarn have fallen owing to new year holidays in the western world, resulting in piling of stocks in the mills, they said.

But ginners on the other hand holding on to their unsold position amid reports of further increase in prices after the Eid holidays as by that time fortnightly arrival figures of phutti would be released by the Pakistan Cotton Ginners Association (PCGA), giving a fair idea of the total crop.

Stray lots did change hands at a uniform rate of Rs2,400 per maund as some of the local mills extended modest support on prompt delivery at their premises, brokers said.

But reports from the Punjab cotton belt indicate transportation problems and higher freight rates being demanded by the cargo haulers limited the daily off-take by the mills and spinners of central Punjab, they said.

They said that normal activity was expected to be resumed after the holidays as transportation of consignments would not be delayed owing to easy availability of trucks and containers.

Official spot rates, therefore, remained pegged at the last close of Rs2,375 per maund but in the ready section some of the deals were done well above them.

New York cotton futures on the other hand suffered fresh setback of 0.25 and 0.19 cents at 54.69 and 55.56 cents per lb for both the ruling March and forward May contracts respectively.

Ready off-take was light totalling about 3,000 bales, the following being some of the notable deals: 2,200 bales, Rahimyar Khan, 400 bales, each Ahmedpur East and Jhang at Rs2,400.