KARACHI, March 22: Trading activity on the cotton market on Saturday remained insipid as both ginners and spinners appeared to be still in holiday mood and did not make fresh commitments.

But a leading local broker claimed that some lots did change hands late in the evening in southern Punjab cotton belt consisting of fine lots around Rs3,400 per maund.

He said the chief factor behind the slow mill ready off-take was higher prices being demanded by the ginners, while spinners were not inclined to go beyond their parity levels.

However, one thing appears certain that local prices may not go beyond the current level as the recent sharp decline in New York cotton futures has made imports more competitive, and spinners may opt for the better quality imported stuff, market sources said.

According to them some of the mills had made forward deals at around 72 to 73 cents after the New York cotton futures were under speculative squeeze and galloped to 94 cents per lb.

“The persistent decline in the New York cotton futures has raised hopes among the spinners of a sympathetic fall in the local rates,” said a spinner, adding “we are expecting the prices below 70 cent per lb mark to resume normal activity”.

The New York cotton futures had fallen from the 12-year peak level some two weeks ago to 72 cents per lb after having suffered successive limit-fall of four cents.

Ginners are, however, not worried over swift changes in the international cotton scenario and steadily held on to their position on the perception that prices may not fall from the current level owing to a short crop, some brokers said.

Official spot rates were again held unchanged at the previous level of Rs3,000 per maund in the absence of feedback from the ready section.

Mill ready off-take was on the lower side, although some of the local brokers said stay lots did change hands in the southern Punjab cotton belt, details of which were not transmitted to their local offices.