KARACHI, April 20: The cotton market on Tuesday ruled steady but ready offtake remained light as spinners are extending guarded support hoping decline in prices. But lower-than-market arrival figures for the fortnight ended April 15 , have altogether changed the future cotton outlook, creating fresh supply problems for the spinners and mills, dealers said.

"Spinners are judiciously trying to keep prices within the current level but supply and demand factors tell a different story," says a leading broker, adding "they have curtailed their daily intake, although they still have a long way to go to see the season through."

Leading among them have opted for inferior varieties, including low-mic ones for blending purposes with the polyester yarn to produce blend cloth for the export markets, he says. Inferior varieties from the central Sindh cotton belt are available at around Rs2,500 and Rs2,700 per maund and bulk of the mill demand is now centred around them.

Floor brokers said owing to falling unsold stocks with the ginners, they were not inclined to lower their asking prices owing to their parity levels. As a result, ready offtake failed to get normal average daily turnover.

"The standoff between the ginners and spinners regarding prices will continue through the season as both are at a disadvantage," market sources said, adding "having purchased phutti at higher rates, the ginners are not inclined to sell at a loss, while the spinners have to maintain their export parity level in line with the export markets."

The ginners also continue to derive support from the higher New York cotton future prices as the local selling prices are still attractive for the spinners as compared to them, they said. New York cotton futures on Monday finished with modest gains ranging from 0.22 and 0.35 cents per lb for both the ruling May and the distant July settlements at 62.21 and 62.71 cents, respectively.

Local official spot rates on the other hand were firmly held at the overnight level in line with average ready rates. Ready offtake was modest totalling about 8,000 bales, including some big deals as under: 3,500 bales, from a central Sindh ginnery at Rs2,500; 1,100 bales, Haroonabad at Rs2,650 to Rs2,700; and 400 bales, Muhammadpur Dewan at Rs2,925.