KARACHI, June 2: Cotton market on Wednesday lacked normal trading interest as spinners were more worried over the law and order situation in the city rather than the supply position and asking prices by the ginners.

Reports of fresh incidents of violence in some areas of the city again kept leading spinners and mills out of the market, their chief concern being the delivery problems, floor brokers said.

Owing to fears of fresh violence brokerage houses closed their businesses a bit early as security concerns are more important for them rather than physical business to honour the orders of the spinners and mills well in time, they said.

The final crop figure is also awaited by spinners and ginners as it will play an important role in determining the future price outlook for the local stuff, market sources said.

According to reports the Pakistan Cotton Ginners Association (PCGA) has compiled the final report after receiving details from its constituents and is expected to release it before the week is out.

Analysts said an eight per cent increase in world cotton production could according to latest figures, depress world cotton rates but it may not have any relevance to the local conditions as the prices here will be governed by the supply and demand factors.

However, any fall below 60 cent per lb could make imports more attractive for the spinners and they may fix the forward deals earlier made for 0.3m bales immediately at any rate below 60 cents.

New York cotton futures price, over the last couple of week, had steadily declined from an average rate of 65 cents per lb to 60 cents and indications are that higher world crop estimates could push them further lower, analysts said.

Local brokers said owing to an extremely warm weather, the new crop in the lower Sindh could mature a bit earlier and picking operations could be resumed by the end of the current month or early next month.

However, the quantity may be too small to resume ginning operations, which are expected from late July and the new crop will arrive here on a modest scale by the end of July or early August. Official spot rates were again held unchanged.

Ready off-take was light totalling about 2,000 bales, mainly from the upper Sindh cotton belt as under: 400 bales, 68-sawgin, Pano Aqil at Rs3,050 and 300 bales, Gothki at Rs2,980.