KARACHI, March 30: The cotton market on Tuesday showed steady trend and was firmly held at the previous level despite falling demand, both from mills and spinners.

Some of the leading spinners were, however, out to grab the floating stock of fine lots at around Rs3,000 per maund and leftover stocks with the ginners of upper Sindh and southern Punjab remained the centre of activity, brokers said.

The spinners who have made forward sales of higher counts of cotton yarn to some sophisticated markets are said to be the main buyers of fine lots around these levels, they said. However, the ginners holding unsold stocks are still entertaining higher price ideas and are selling them in part and are not inclined to sell them just in one go.

"New crop from the lower Sindh cotton belt is still far away and in between could happen anything depending on the supply and demand positions," market sources said.

Reports of higher acreage under the new crop by the growers because of a Rs75 increase in the procurement price to Rs925 from Rs850 per 40 kg, have reassured the spinners the next crop could be in line with their consumption needs if all goes well till the picking operations resume, they added.

However, the immediate worry of spinners appears to be "how to bridge the supply gap" as the imports are not that cheaper now and the local crop is too short to meet the entire demand.

New York cotton futures late Monday closing were quoted higher by 0.65 and 0.54 cents per lb at 65.55 and 67.18 cents per lb, for both the ruling May and the forward July contracts, respectively, making imports more expensive.

"The main focus will remain on the local stuff," spinners say, adding "but we have to go slow to contain prices within the current level." Official spot rates were firmly held at the previous levels, although stray deals were finalized in line with the quality premiums.

According to brokers, on an average ready offtake of 15,000 bales is being transacted daily as the spinners and the mills are making direct purchases from the ginners.

Ready offtake was light as till late in the evening about 5,000 bales changed hands, the following being some of the notable deals: 1,300 bales, Tharo Shah at Rs2,900; 600 bales, Shahdadpur at Rs2,750; 1,000 bales, Dharki at Rs3,000; 200 bales, Gothki also at Rs3,000; and 200 bales, Chistian at Rs2,450.