KARACHI, June 5: Trading activity on the cotton market on Thursday was light as spinners kept to the sidelines most of the time owing to higher asking prices by the ginners.

News from the world cotton markets were not that encouraging as had been the practice at the fag-end of the fading seasons but speculative pressure on the New York cotton futures indicates that prices elsewhere will be guided by the supply and demand factor rather than the future market, analysts said.

Both the new crop ruling July and October contracts stayed below 70 cents per level for the last couple of weeks partly on estimates of higher US cotton output and partly to falling demand from the major consumers, they said.

Market sources said ginners, notably from the upper Sindh and southern Punjab cotton belt, who hold bulk of the unsold stocks of about 0.2m bales appear to be in no hurry to unload their long positions hoping fresh increase in prices.

“Both are eyeing beyond the level of Rs4,000 per maund amid market talk that the new crop may be delayed because of crisis of irrigation water,” they said, adding: “That is, perhaps, why they are sitting pretty comfortable on their stocks”.

Ginners said the unsold stocks lying in their godowns are too small a quantity to have a negative impact on the adjustment and extension of their overdraft limit for the new crop.

Most of the ginners had already adjusted their bank accounts for the fiscal year ending on June 30, and that is, perhaps, why they are firmly holding on to their stocks for a better price, they said.

New York cotton futures turned mixed, while the ruling July contract rose by 0.11 cents at 64.32, forward October was fractionally lower at 69.27 cents.

Official spot rates on the other hand were firmly held at the previous level of Rs3,700 per maund.

A single deal of 1,400 bales from a Ghotki ginnery was reported at Rs3,900 per maund.