KARACHI, May 8: Trading on the cotton market on Monday resumed on an easy note as official spot rates were revised downward by Rs25 per maund followed by selling by some of the ginners.

The market has been holding around the level of Rs2,425 per maund for the last couple of weeks as standoff between the ginners and the spinners was at its peak on the price front, floor brokers said.

“Ginners were not inclined to lower their asking prices on the perception that spinners needing more supplies will remain at the receiving end until the new crop from lower Sindh cotton belt arrives on the market,” they said, adding “while spinners relied on supplies from the TCP and actively participated in its tenders”.

But higher than ginner calculations unsold stock of 0.803 million bales lying in their godowns seems to have taken steam out of their holding capacity as some of their weaker links indulge in hasty selling, leading to downward revision of prices, market source said.

“The decline in prices was psychological rather than genuine”, they said, adding “mills still need over a million bales to meet their forward demand before the new crop arrives and may remain active buyers around these level for fine lots”.

Leading brokers were, however, of the opinion that prices are expected to remain stable around the higher levels despite TCP tender as spinners may not be in a position to check any future price flare-up.

“Reports of a considerable decline in the irrigation water at the sowing time, which is expected to be resumed by the third week of the current month, could keep prices higher amid fears of delay in arrival of new crop,” they said.

Official sources have already reduced the new crop acreage from 30m acres to 26m acres foreseeing some problems on the supply of irrigation water, they added.

Ready off-take was modest totalling about 3,000 bales as under: 600 bales, fine lots from Mirpur Mathelo ginnery at Rs2,475, 500 bales, Shujabad at Rs2,425, 500 bales each Jalalpur and Lodhran at Rs2,425.