KARACHI, Jan 29: Trading on the cotton market on Tuesday failed to pick up as spinners and mills were monitoring international cotton situation before making larger commitments.

However, ginners were inclined to oblige any buying offer even for fine lots around Rs3,350 or slightly below it but spinners remained selective buyers apparently relying on the imported stuff, floor brokers said.

Some of the mills purchased big lots of fine lint around Rs3,350 from southern Punjab ginners who have already sold out a good part of their contamination-free stock at Rs3,400 per maund, they said.

There is a loud whispering in the market that some of the leading ginners, who still hold 1.5m bales stock, are in no mood to lower their asking prices on the perception that pressure on supplies could give them still better return.

The last couple of weeks activity reflects that spinners and mills are not inclined to go beyond certain daily buying limits in an apparent effort to keep prices below Rs3,400 per maund.

“One thing is clear that the textile sector has managed to contain price flare-up or speculative rise in prices, which is generally caused by a short crop,” market source said.

Moreover, spinners are not inclined to go beyond their export parity levels, they said.

Meanwhile, private sector exporters have registered foreign sales contract of 84,640 bales with the Trade Development Authority of Pakistan (TDAP) up to Dec 31, 2007, which include 8,656 bales from the old crop and some 62,059 bales have already been shipped to various destinations.

Official spot rates were again firmly held at the overnight level of Rs3,200 per maund for an average quality lint.

New York cotton futures on the other hand recovered 0.41 and 0.46 cents per lb at 68.30 and 70.16 cents for both the maturing March and the forward May contracts, respectively.

Mills ready off-take was modest totalling about 5,000 bales as under: 1,400 bales, Dadu at Rs3,200, 2,400 bales, Rahimyar Khan, 800 bales, Sadiqabad and 600 bales, Khanpur at Rs3,350.