KARACHI, May 9: Cotton market on Tuesday staged a modest recovery as ginners again raised their asking prices in sympathy with higher New York cotton futures and the perception of pressure on supplies.

Snap rally staged by the New York cotton futures after several lean sessions has encouraged ginners to hold on to their positions rather than selling at the lower rates, dealers said.

Both the matured May and the ruling July settlements were quoted higher by 0.74 and 0.63 cents at 49.44 and 50.94 cents per lb respectively. Rolling over of positions from the matured to the ruling contact also caused increase in prices.

Official spot rates were, therefore, again revised upward by Rs25 per maund fully recouping the overnight loss as leading ginners kept to the sidelines and indicated to sell their stocks around Rs2,475 on the lower side, floor brokers said.

But leading spinners awaited further developments on the cotton front including fresh tender news from the TCP despite spinners demand to ban cotton export and directing the TCP to sell its stocks to the local mills.

As a result, physical business remained slow owing to a difference in sellers and buyers future price perceptions, but reports coming from the southern Punjab cotton belt indicate that spinners and mills are in the market there and lifting modest quantities of lint at the ginners asking prices, market source said.

They ruled out the possibility of an active buying at this stage as most of them were not inclined to go beyond their export parity levels and were apparently awaiting the arrival of new crop.

Official spot rates were quoted higher by Rs25 per maund at Rs2,425 but some of the deals in the ready section were done well above them.

Ready off-take was light totalling about 3,000 bales including a big deal of 2,243 bales, from a Rahimyar Khan ginnery at Rs2,475.