KARACHI, July 29: Active trading was witnessed on the cotton market on Tuesday as spinners, after a brief pause, resumed covering operations amid conflicting reports about the damage to standing crop by the mealy bug.

In physical trading bulk of the business was transacted between Rs4,100 to Rs4,200 per maund, depending on the quality of lint, as both mills and spinners were willing buyers at this rate, floor brokers said.

They said Monday’s rain in some of the major cotton growing areas beyond Hyderabad was beneficial for the crop as it washed away pests and insects from the plants, they added.

Private sector cotton exporters had also joined the race as an active player and sold another 800 bales of fine quality lint to spinners and mills at an all-time peak level so far of Rs4,250 per maund, they said.

The lots in trade were from Chichawatni, Sahiwal, Burewala and Pak Pattan on Karachi delivery basis, they said.

Cotton analysts said the higher local prices have lured exporters to sell their stocks to the local consumers rather than opting for exports which involves procedural problems notably at the receiving end.

“The all-time high rates at which spinners are buying lint reflect that world textile market is in the process of improvement and local spinners and mills have a fair margin on their foreign sales,” they said.

Last season, they had purchased about 116,000 bales and a good part of it had been shipped to various destinations at different rates and the remaining quantity was sold in local market.

There was no change in the official spot rates which were firmly held at the overnight close of Rs3,900 per maund but in the ready section most of the deals were done well above them.

New York cotton futures on the other hand came for modest trade selling at the higher levels and were marked down by 0.60 and 0.65 cents per lb at 71.08 and 73.85 for both the ruling October and the forward December settlements respectively.

The following deals were finalised on Tuesday in the ready section:

SINDH TYPE: 200 bales, Sanghar at Rs4,150, 300 bales, Shahdadpur at Rs4,100 to Rs4,150, 600 bales and Hyderabad at Rs4,100 to Rs4,200.

PUNJAB VARIETY: 200 bales, each Haroonabad and Arifwala and 400 bales, Pir Mahal at Rs4,200, 200 bales, Chichawatni at Rs4,125, 200 bales, Renala Khurd at Rs4,190, 200 bales each Bahawalpur and Hasilpur and 400 bales, Pakpattan at Rs4,150.