KARACHI, Dec 30: Pre-holiday conditions prevailed on the cotton market on Saturday amid slow physical activity but prices remained stable around the previous levels.

Floor brokers said normal activity was expected to be resumed after eid as both sellers and buyers would be in the arena and indications were that pent up demand could push prices again higher.

But a leading cotton analyst said prices may stay unchanged at the current levels as higher import of lint from India may ease pressure on local supplies and the consequent status quo.

According to spinners textile sector had made forward deals with Indian exporters totalling about 0.6m bales and shipments against which were expected to be made shortly through railways.

Some of the leading mills and spinners also booked a substantial quantity of lint from other sources in an effort to meet any shortage in the local output.

“The total lint imports could touch the high mark of about 2m bales as spinners are not inclined to take risk about the future supplies, which could hurt exports,” they said.

However, some others said despite higher imports, local lint will continue to have an edge over the imported stuff both on price and quality and there is no possibility of any major change in the prevailing price outlook.

Meanwhile, according to reports reaching here Sindh lint was being quoted between Rs2,375-2,575 per maund depending on quality as upper Sindh K-68 is fetching higher prices.

Lint from the Punjab is quoted around Rs2,400 and Rs2,475 per maund and spinners and mills are after each fine lots from the southern Punjab ginners.

Official spot rates did not show any change and were quoted at Rs2,500 but on the other hand New York cotton futures suffered sharp fall on selling.