KARACHI, Dec 5: Trading on the cotton market on Friday shrank to modest proportions as spinners and mills did not make fresh commitments owing to delivery problems due to upcoming Eid holidays.

The interesting feature was that no deals were made for post-Eid delivery as spinners were not inclined to commit themselves because of highly erratic world cotton markets and a sympathetic fall in local prices, floor brokers said.

Only 2,000 bales, compared with the average daily off-take of 30,000 bales, changed hands on Friday both from the Sindh and the Punjab ginneries apparently for prompt delivery, they said.

But fine lots were traded on the higher side around Rs3,000 per maund.

Analysts said the post-eid market was expected to remain under pressure as growers would try to dump phutti in ginneries to clear the backlog even at the lower rates.

“The other disturbing factor, which could bearishly influence local prices, is the steep decline in the New York cotton futures on panic selling triggered by reports of higher US crop ideas and falling world demand,” they said.

Both the maturing December and the ruling March contracts finished with limit-fall of 3.44 and 3.00 cents per lb at 41.66 and 43.60 cents respectively, sending shock waves on the world cotton markets, they said.

The negative impact of the crisis on the world cotton markets will be felt here after the eid holidays, but much will depend on the holding capacity of the ginners and the growers, they added.

Official spot rates did not show any change for the second day in a row and were firmly held unchanged at the overnight level of Rs2,950 per maund.

The following are some of the deals, reported in the ready section late on Friday evening.

SINDH TYPE: 200 bales, each Sanghar and Hyderabad at Rs2,825 and 200 bales, Matli, at Rs2,810.

PUNJAB VARIETY: 400 bales, each Khanewal and Sadiqabad and 600 bales, Rahimyar Khan at Rs3,000.