KARACHI, Feb 16: Cotton market finished the weekend session on a dull note as both sellers and buyers kept to the sidelines having an overview of the textile trade in the wake of president’s US visit.

While the former entertaining a modest boost in prices held on to their positions, the latter were still busy analysing the impact of $142 million increase on the export trade.

But as the reports about the increase in textile trade between the two countries lack details, spinners were not inclined to go beyond their export parity limits, dealers said.

Thus, there was a relative calm on the cotton trade as far as the local market was concerned but reports coming from the southern Punjab cotton belt, the main centre of activity indicate that a leading group of spinners is making forward buying on credit basis at rates not immediately known to the local brokers.

But a leading broker expects a pick up in the ready business by the next week as by that time both the buyers and sellers will have redefined their priorities.

“Spinners were awaiting the details of the widely speculated US package, which according to press reports was destined to change Pakistan’s economic scenario and once it was out perceptions about the future textile trade changed accordingly”, he says.

But as the aid package seems to have fallen below the market perceptions, there was a logical sluggishness.

Cotton analysts said spinners will now focus their attention to the European Commission as increase in quota and related tax incentive are expected to give the needed boost to the textile trade in the coming months.

Meanwhile, reports coming from the cotton belt indicate that leading ginners who still hold long positions are now a bit optimistic and hope mills will resume their normal operation thanks to the presence of the TCP.

After having delivered phutti to the ginners, growers have mostly have cleared their positions but are still reluctant to fix prices of unfixed stocks hoping further increase in prices.

After the entry of the TCP in the market, phutti prices have risen by Rs50 to 75 per maund, market sources said.

Ready offtake was light as till late in the evening about 3,000 bales, notably from the Punjab ginneries changed hands between Rs1,550 to Rs1,650 and forward lots around Rs1,675.