KARACHI, Jan 2: Trading activity on the cotton market on Friday remained relatively slow as spinners made selective covering purchases owing to higher asking prices by the ginners.

The slow-down in part was also attributed to the absence of leading spinners who are still in the process of evolving new buying strategy amid reports of a short crop, brokers said.

They said the arrival figures of phutti for the forthnight ended Dec 31, are keenly awaited by both the buyers and sellers as they will give a fair idea of the crop.

In the backdrop of conflicting crop estimate, spinners are not in a position to decide whether or not to go all out for the unsold stocks despite the fact that in the process, prices may rise further, they added.

"Though opinions are divided about the total crop figure, indications are that the total could be around the official projections of 10m bales," says a leading ginner adding "a number of leading farmers are still holding on to their unsold stocks to sell them around Rs1,600 or above per 40 kg."

However, growers may not like to hold on to their stocks for fears of damage to quality and will try to get out of the long positions well before that deadlines.

In normal market practice, ginners levy a certain amount of quality allowance on the phutti, which arrives in their ginneries during the month of February and growers tried to be well in time and in the process prices may ease from the current higher levels.

Over the last couple of sessions, lint prices had risen sharply higher as ginners are not inclined to sell below their asking prices. Fine lots are being sold at Rs3,400, while inferior ones are sold between Rs3,250 to Rs3,375 per maund.

Meanwhile, consignments of the imported stuff are steadily arriving and the actual arrival figure has touched the high mark of well over 0.300m bales including those which arrived via overland route.

Market sources said spinners had made forward deals for about 0.700 bales to cover the possible local crop shortfall if any. Owing to persistent increase in prices in the ready for the last couple of sessions, the market committee also increased the spot rates by Rs50 per maund.

Ready offtake was light owing to higher asking prices and till late in the evening about 5,000 bales changed hands as under: 400 bales, Shahpur Chakkar at Rs3,050, 400 bales, Shujabad at Rs3,400, 600 bales, Rahimyar Khan also at this rate, 600 bales, Chingoth at Rs3,375 and 400 bales, Yazman at Rs3,250.