KARACHI, Dec 11: Cotton market on Tuesday resisted fresh fall as leading ginners held on to their long positions and did not lower their asking prices.

Trading was, however, relatively slow as spinners and mills too hesitant to make bigger commitments owing to delivery problems amid reports of higher freight rates, market sources said.

Most of the deals, notably in the Punjab variety, were finalised well above the official spot rates for an average quality of lint to be delivered after Eid holidays, they said, adding “as some of the ginners being uncertain about the future price outlook made forward buying”.

A big deal of 6,000 bales from Rahimyar Khan ginneries at Rs3,035 to Rs3,100 shows that some of the spinners entertaining further boost in prices in the new year trading were willing to pay a little more prior to upcoming closures, they added.

There was a general perception that the new year trading on world cotton market could be too expensive owing to supply and demand factors and that would have a sympathetic bullish impact on the local market, said a leading ginner.

He said New York cotton futures were currently being traded at 64.70 and 66.31 cents per lb for both the ruling March and the forward May contracts and indications were that they might surge further as global demand of lint was set to outstrip the supplies towards the fag-end of the current season.

That is perhaps why leading spinners and mills are indulged in extensive buying of local lint at the current rates which are slightly below the international parity levels, he added.

Moreover, the short crop could also play its role in giving added boost to local prices despite the fact that some of leading spinners and mills had already made forward purchase to cover the supply gaps, said a local broker.

Official spot rates were, therefore, firmly held at the last level of Rs2,950 per maund after having fallen by Rs150 during the last couple of sessions on hasty selling by some of the ginners.

Ready off-take was modest totalling about 10,000 bales as under:

SINDH TYPE: 1,000 bales, Shahdadpur at Rs2,950 to Rs3,000 and 600 bales, Mehrabpur at Rs2,975.