KARACHI, Oct 11: Cotton prices on Saturday remained stable around the overnight levels despite reports of fresh limit-fall in the New York cotton futures, analysts said.

They said the local market is thriving on the supply and demand factors as both buyers and sellers are not inclined to be influenced by the current run on the foreign financial and capital markets.

“But the current financial crisis in the western world could hit hard most of the export industries, notably the textile one, which contributes well over 60 per cent to the total national export proceeds,” they added.

The steep decline of Rs60 to 70 per bundle of 10 lbs in prices of cotton yarn on the world markets after the virtual crash of the New York cotton futures market had already sent shock waves to the local industry.

“The textile industry is heading for a major crisis if the current turmoil on the world markets continues, notably the US and the Europe, major importers of local textiles,” said a leading spinner.

The fall of the New York cotton futures below the benchmark of 50 cent per lb at 49.44 for the ruling December contract may have made imports of lint cheaper but at the same time caused a major fall in the textiles, he added.

However, lint prices on the local market are holding on to their previous levels apparently on the perception of a short crop but the developing crisis on the textile export front may not allow them to absorb the negative impact of the foreign crisis, they said.

New York cotton futures were further marked lower by 3 cents per lb for both the ruling December and the forward March contracts at 49.44 and 53.87 cents per lb, respectively.

Official spot rates on the other hand were held unchanged at Rs3,475 but bulk of the business in the ready section was done at Rs3,450 to 3,500 per maund. Phutti rates were quoted between Rs1,600 to 1,700 per 40 kg.

The following are some of the notable deals reported in the ready section;

SINDH TYPE: 1,600 bales, Mirpurkhas at Rs3,400 to 3,425, 2,000 bales, Shahdadpur at 3,450 to 3,550, 1,200 bales, Sarhari at 3,475 to 3,550, 2,200 bales, Tando Adam at 3,450 to 3,550, and 400 bales, Khipro at 3,450.